August 10, 2009

Court Decision May Finally Allow New Owners of Ahava to Begin Production

New York…Menachem and Schneuer Bistritsky may finally begin to really assume control of the Ahava plant in Lewis County after a judge issued a preliminary injunction evicting Ahava of California. The injunction officially grants FJB and Toobro, the companies owned by the Bistritskys, possession of the plant and immediate access to the premises without interference from Ahava. After Moshe Banayan, the owner of Ahava filed bankruptcy, Ahava of California, owned by Moshe’s brother continued possession of the Upstate New York plant. The Bitsritskys bought the plant from two financial institutions that had liens on Ahava through the Chapter 7 bankruptcy of Moshe Banayan. New York City attorney Leo L. Esses, representing Ahava, claimed the agreement was fraudulent. Sources told KosherToday that Ahava’s products had suffered of late from quality issues, but the Bistritskys are determined to completely revamp the company and to produce a high quality dairy product that is also Cholov Yisroel. There was a great deal of speculation by the kosher sources of the impact of a strong Ahava on the rapidly growing Cholov Yisroel market.