Bagir Group Ltd (LON:BAGR) has said its shares will remain suspended as it seeks a temporary stay on insolvency proceedings to assess the feasibility of maintaining its business.
On Tuesday, the tailoring firm said it has filed an application to the District Court in Beer-Sheva, Israel, for a temporary stay of proceedings against the company, appointment of a trustee and other relief while it assessed the ability to maintain the business and its assets.
READ: Bagir says seeking cash injection after orders dry up; cautions on its future
As a result, the court ordered that until a decision on the application was made, all asset disposals are prohibited alongside any transactions, legal proceedings, discharging past debts and the realisation of assets. The court is expected to rule on the application by Monday 20 April 2020.
Bagir’s shares were initially suspended on 3 April after the company said a significant proportion of its order book had been put on hold or cancelled during the coronavirus pandemic, and as a result, it anticipated that it had “insufficient cash resources available to operate the business as a going concern”.
The shares are suspended at 0.47p.