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CM Composite Materials, an Israeli supplier to major defense and aviation companies, has asked a court for protection from creditors and a temporary trustee to oversee its rehabilitation, reporting about NIS 26 million in debts and a further $8 million owed to an American investor.
The Modi’in-based manufacturer employs about 105 people and supplies companies including Israel Aerospace Industries, Rafael, Elbit and Boeing, according to a Sunday report on its filing. Its products include structural components, assemblies, production molds and airframe parts for unmanned aircraft.
A cash shortage despite orders
In the reported request, CM says a shortage of working capital is preventing it from buying raw materials and generating enough new revenue. It reports an order backlog of NIS 54 million and says customers remain committed to it, according to a separate account of the application.
The company attributes its difficulties to falling orders and raw-material shortages during the pandemic, increased management and administrative expenses, and the costs of moving to Modi’in in 2023. These are the company’s explanations in the reported filing.
Seeking room to rehabilitate
CM is seeking a stay of proceedings and the appointment of a temporary trustee as part of its request to begin rehabilitation. It argues that court protection would allow new funding to support day-to-day operations rather than be seized by creditors.
The reported application says CM holds defense and aviation manufacturing approvals and is classified as an essential enterprise. The company points to the expertise and certifications it has built over nearly two decades as the basis for its rehabilitation prospects.
For its workforce and creditors, the immediate issue is financing ongoing operations. The company says it cannot currently pay employee salaries and has asked for the process to move quickly.
JBizNews Desk | Modi’in, Israel
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