Court Appoints Two Trustees to Examine Rehabilitation of Israeli KFC Operator

The Beersheba District Court appointed two trustees on November 2 to examine whether Smart Service K and K, the operator of 12 KFC restaurants in Israel, can be rehabilitated. Judge Yaakov Persky named attorney Amit Lederman and accountant Aliza Sharon to review the company's financial position and the options available to it. The trustees must submit an initial report within 14 days. Their examination will cover the company's assets and liabilities, employee matters and urgent issues arising during the proceeding. They must also address the creditors who appeared at the hearing. The court required a customary undertaking of NIS 250,000 for the performance of their duties. The application presented liabilities of approximately NIS 50 million. The reported breakdown included about NIS 37 million in shareholder loans, NIS 9.5 million owed to ordinary creditors, NIS 1.9 million to employees and NIS 1.2 million to authorities. These figures were rounded. The company was established in 2020 to develop and operate its restaurant network. Its branches include locations in Tel Aviv, Haifa, Ashdod and Netanya. The appointment opens an examination of rehabilitation and continued operations; it does not settle the chain's future. The trustees' initial report is the next step specified in the ruling.