38
ELETTRONICA SICULA (JUDGMENT)
mend (inter a1ia)that it should be granted if ELTEL agreed to purchase al1
ELSI's inventoria1 raw material for 1,800 million lire; the representative
of Raytheon Europe on the committee vigorously opposed the lease. The
trustee in bankruptcy however recommended that the lease be granted on
the terms requested, and on 8 April1969 the bankruptcy judge so directed.
Raytheon Europe appealed against this decision but without success. A
third auction was scheduled for May 1969; in April ELTEL proposed to
buy the work in progress - the material left on ELSI's production lines
when the plant was requisitioned - for 105 million lire; this had been
valued in the course of the bankruptcy proceedings at 217 million lire.
Raytheon Europe's representative on the creditors' committee opposed
this sale, but was outvoted.
40. The third auction of ELSI's premises, plant and equipment and inventory was held on 3 May 1969, the minimum bid being set at 5,000 million lire, but again no bids were received. ELTELhad informed the bankruptcy court on 16 April 1969 that it was willing to offer 3,205 million lire
for the premises, plant and equipment, excluding the supplies - "merchandise, raw materials and semifinished goods" - which it did not regard as indispensable. On 3 May 1969,the trustee in bankruptcy requested
the bankruptcy court to approve a sale of the work in progress to ELTEL
on the terms proposed by ELTEL and approved by the creditors' committee. On 9 May 1969, Raytheon Europe's appeal against the decision
authorizing the lease of the premises and plant to ELTEL was rejected.
On 27 May 1969 ELTEL made an offer to the bankruptcy court to buy
the remaining plant, equipment and supplies for 4,000 million lire. The trustee in bankruptcy proposed acceptance (subject to minor changes in the
terms), and the creditors' committee decided on 6 June 1969 to approve
the proposal, the Raytheon Europe representative voting against. On
7 June 1969the bankruptcy judge set 12 July 1969as date for an auction on
the terms approved by the creditors' committee. On 9 June 1969 Raytheon
Europe appealed against this decision, but the appeal was rejected on
20 June 1969. The auction was held on 12 July 1969, and ELTEL purchased the auctioned property at the total price of 4,006 million lire.
41. The appeal filed by ELSI on 19 April 1968 (paragraph 32 above)
against the requisition order of 1April1968 was determined by the Prefect
of Palermo by a decision given on 22 August 1969. The Parties are at issue
on the question whether this period of time was or was not normal for an
appeal of this character. The decision on the appeal was given following a
request to that effect by the trustee in bankruptcy made on 9 July 1969, in
exercise of a right to request a decision conferred by an Italian Law of
3 March 1934.That Law provides that if the appeal has not been heard 120
days after it has been filed (i.e., in this case by 17 August 1968), a request