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Castan to be sold to Tazpit for 9.7 MS

The aluminium group Kastan, delivering aluminium based projects for residential construction projects and which employs 22 employees, has encountered financial difficulties and has undergone extensive corporate recovery and is now expected to be sold to the real estate group – Tazpit – for an estimated sum of 9/7 million Shekels.

During the corporate recovery process, performed by KCR (Kaminski Corporate Recovery) while the company was under stay of proceedings before the expected sale, various actions were performed under the supervision of the KCR experts: beneficial pricing changes were implemented to upcoming projects, major changes were put into place as to how subcontractors were being hired and major improvements were installed when purchasing, manufacturing, quality assurance and collection were concerned.

The stay of proceedings took place while the global CoVID-19 pandemic brought about various constraints, such as lockdowns, which affected the company on almost every aspect – from pricing and new customers, through operations and project management, all the way to collections. Together with KCR’s expert intervention team Kastan managed to accumulate a substantial backorder and become operational viable so as to even create an operational profit, which, in turn, enabled the company to to conduct negotiations for the sale of the company with minimal pressure, thus optimizing the return for the trustees. In fact, after the purchase proposal was submitted the trustees received two more offers from interested parties.

A key manager in the KCR expert team positively mentioned that during the expected sale to Tazpit, controlled by Zeev Joseph, the purchasing party has committed to continue employment for 15 out of the 22 company employees for a minimal period of 12 months, as well as consider keeping on additional employees.

To read the full Hebrew article in Calcalist magazine click here.