Has the Tariff War Brought Highcon to Bankruptcy?

Hours after the Israeli news site Globes reported that Highcon Systems is winding down its businesses, reports are coming in that Highcon has filed for bankruptcy protection and has cited concerns over the tariff war and the global economic slowdown as factors in the decision to file for bankruptcy protection under Chapter 10 Insolvency and economic Rehabilitation Law.

According to Shiri Habib-Valdhorn's article “Packaging Tech Co. Highcon Winding Down” on Globes, the English version of the Israeli business-focused daily, “Highcon has wiped off 99.9% of its value for investors.”

The Israeli newspaper correspondent notes Highcon’s Chairperson Shlomo Nimrodi had previously expressed confidence in the company’s disruptive technology. However, a combination of external and business factors, including a global economic slowdown, “‘the effects of the tariff war initiated by the U.S.,’” significant cash flow difficulties, and postponed orders amounting to $10 million, has led to Highcon’s current predicament.

Extensive layoffs have already happened, Habib-Valdhorn reports, with the company retaining only 20 employees and consultants to maintain minimal operations.

Habib-Valdhorn reports one bright spot for the company — noting that Highcon’s share price shot up by more than 60% after the company reported its plans to the stock exchange last week. Since the initial uptick and at the time of publication of the Globes’ article today, Highcon share price has dropped approximately 20%.

The full article by Shiri Habib-Valdhorn can be found on the Israeli site Globes at https://en.globes.co.il/en/article-packaging-tech-co-highcon-winding-down-1001506469