Israeli Luxury Car Agency Buy And Drive Files for Debt Settlement Amid 97M NIS Deficit

Buy And Drive Holdings, a veteran luxury vehicle agency operating in Israel since 1997, has filed an urgent request with the Central District Court for a stay of proceedings and approval to convene creditor meetings to formulate a debt settlement. The company accumulated debts totaling 97 million NIS.

Financial Turmoil and Impact

The company noted that in 2022 its turnover exceeded 600 million NIS, with a leasing and rental fleet of approximately 1,100 vehicles. However, starting in late 2022 and throughout 2023, the firm suffered severe shocks including surging interest rates, heavy financing costs, new competitors, electric vehicles, and the economic fallout of the Iron Swords war.

"The company took a long series of efficiency, reduction, and realization measures, which brought a tangible change to its economic and business situation," stated the legal filing.

Proposed Recovery Plan

The recovery plan is based on a binding agreement to sell its property in Netanya for 51 million NIS plus VAT to Miara Finance, which is expected to cover secured debts and leave an estimated surplus of about 10 million NIS for other creditors. The company's total liabilities include approximately 10.9 million NIS to tax authorities, 40 million NIS in non-bank financing for the property, and 15 million NIS to creditors such as Kolmobil, Carasso, and SR Accord.