Highcon Systems' financial situation has deteriorated sharply. The Israeli manufacturer of digital cutting systems has undertaken drastic staff reduction measures and is preparing to enter safeguard proceedings. In a report published on March 26, 2025 on the Tel-Aviv Stock Exchange website, Highcon announced that it was laying off the majority of its employees, retaining just 20 staff in order to maintain minimal activity.
Highcon plans to file a petition with the court in the coming days, seeking a temporary freeze on its creditors' claims. This mechanism, governed by Chapter J of Israel's Insolvency and Economic Rehabilitation Law, enables a company in difficulty to formulate a debt agreement outside conventional insolvency proceedings.
10 million in orders blocked
This decision follows a worsening of Highcon's cash position in recent months. The manufacturer explains that several orders, representing a total of around $10 million and in the final stages of approval, have been postponed "for reasons beyond its control". These delays have prevented the company from raising the funds needed to cover its financial commitments.
The instability linked to the conflict between Israel and Hamas, combined with the global economic slowdown and the uncertainty caused by new customs barriers imposed by the United States, slowed down the decision-making of many customers and prospects. Highcon also notes that the mention of "going concern" in its financial reports may have affected the confidence of potential partners, leading to the postponement of several projects.
Reduced cash position and equity deficit
In the same official report, Highcon states that it has been operating for some time with very limited cash flow. An unaudited review of its 2024 financial statements reveals an equity deficit, although no official validation has yet been issued by the statutory auditors.
The digital converting machine company is planning to seek the appointment of an administrator, while maintaining a reduced level of activity in order to preserve assets and formulate a solution that takes into account the interests of the various stakeholders.
Drupa's momentum slowed
This reduction in activity comes just a few months after a good level of sales activity at the end of Drupa 2024 with the announcement of new products for the packaging sector, including Beam 3, Vulcan and Beam 2C .
After the publication of this report, Highcon listed on the Tel Aviv Stock Exchange since 2020 saw its share price plummet by 78%. Its main investors are Landa Ventures, owned by Benny Landa, and JVP, headed by Erel Margalit.
