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Ethernity Networks Ltd shares fell on Monday, after the suspension on its shares was lifted after just two business days. Ethernity Networks is an Airport City, Israel-based supplier of data processing semiconductor technology for networking appliances. Shares in the company were down 8.5% to 0.70 pence each in London on Monday afternoon. Shares in Ethernity were suspended on Thursday last week, after it announced its application to a court in Tel Aviv for a temporary suspension of proceedings order and to convene a meeting of creditors. On Thursday, it said it has faced significant challenges in recent months, including ‘a significant and unexpected increase in cost and lead-times’ of essential components, following a global shortage caused by Covid-19. Several customers also have experienced pandemic-related financial difficulties, making it harder for Ethernity to collect outstanding debts. On Monday, Ethernity said that the court in Lod has granted the company with a 21-day temporary suspension of proceedings order. A settlement manager has been appointed by the court to review the company’s short-term budget and is expected to provide an initial report to the court within 10 days, as part of the process to determine whether the extended period for the TSP Order will be approved. ‘There can be no guarantee that the court will approve the extended period,’ it added. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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