Defense Supplier CM Composite Materials Files for 26 Million Shekel Debt Relief
Defense sector supplier CM Composite Materials has filed for receivership with debts of 26 million shekels. The Modi'in-based firm, employing 105 workers, serves major clients including IAI, Rafael, and Boeing.
CM Composite Materials, a key defense industry supplier based in Modi'in, has filed an urgent petition with the Central District Court seeking debt relief, a stay of proceedings, and the appointment of a temporary trustee amid mounting debts totaling approximately 26 million shekels. Founded in 2007 and led by controlling shareholder Matanya (Mati) Moskovitz, the company employs around 105 workers and specializes in manufacturing advanced composite materials for the defense and aerospace sectors.
The company is officially recognized by the state as an essential enterprise providing vital services, holding rigorous defense and aviation certifications. Its prominent clientele includes Israel Aerospace Industries (IAI), Rafael, Elbit Systems, and Boeing. CM Composite Materials produces structural components, assemblies, production molds, and fuselage parts for unmanned aerial vehicles (UAVs). According to the legal filing, the firm possesses unique professional expertise and manufacturing clearances critical to major Israeli defense contractors and international clients.
Legal representatives Amit Lederman and Dorit Karni from the Amar Reiter Jeanne Shochatovitch & Co. law firm noted that the company evolved from a modest facility in Holon into Israel's leading manufacturer in its field. Assets are valued at over 10 million shekels, while liabilities reach approximately 26 million shekels. This figure excludes an additional debt of roughly 8 million dollars owed to an American investor that has injected funds and continues to express confidence in the enterprise.
Liabilities include roughly 4 million shekels owed to employees represented by attorney Liza Hadash, about 2.5 million shekels to tax authorities, 5.35 million shekels to the National Insurance Institute and pension funds, 7.15 million shekels to Giza Singer Even Mezzanine, and 6.5 million shekels to general creditors. The company attributed its financial distress to the COVID-19 pandemic, global recession, supply chain disruptions, a costly administrative expansion under a former CEO, and an expensive relocation to Modi'in in 2023.
Management expressed optimism regarding the rehabilitation process, stating that the company's intrinsic value warrants recovery and anticipating fruitful cooperation with the appointed trustee.
