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Latest Updates / Insolvency and Debt Arrangements
July 18, 2024
Representing U.S. Investment Fund in Vesttoo’s International Insolvency Proceedings
Our firm represents the investment fund Mouro Capital, a shareholder with an appointed director, in the insolvency proceedings of the international Israeli fintech company Vesttoo.
This is a parallel insolvency process taking place in both the U.S. and Israel, with the company’s debts estimated at approximately $3 billion. We represent the fund as Vesttoo (and 48 affiliated entities) undergoes Chapter 11 proceedings in the U.S., while in Israel, enforcement proceedings for debt restructuring and recognition of the foreign insolvency proceedings are underway.
As part of this, declaratory relief actions have been filed in Israel to establish jurisdiction over issues related to the directors’ activities in the company.
July 4, 2024
Insolvency: Idan Miller Lectures to Israel Builders Association Course
Idan Miller, the head of our firm's insolvency practice, lectured to attendees of an Israel Builders Association financial management course. The focus of the lecture was how to handle and prepare for insolvency events.
June 26, 2024
New Precedent: Commissioner for Insolvency Proceedings Accepts Military Reserve Duty as Justification for Relief
Idan Miller, the head of our firm's insolvency practice, was appointed as the insolvency trustee for White Dress Marketing Ltd. (formerly Riki Dalal Group). Together with Hadar Eilon, Idan submitted an economic rehabilitation plan on behalf of the company and its shareholders for the Tel Aviv District Court's approval. In his request, Idan asked that the controlling shareholder's military reserve service be recognized as a contributing factor for the purpose of granting relief and avoiding a full insolvency procedure. When asked by the court for his response, the Commissioner for Insolvency Proceedings accepted this position.
June 10, 2024
Increasing the Odds of Winning in an Insolvent Corporation Auction
The recent preference shown by the administrators of the insolvent ISBECO company toward the purchase offer from Hacarem Spirit indicates that, despite economic logic suggesting otherwise, the highest monetary offer will not always be the winning bid in the process.
January 3, 2024
Personal Liability for Debt to the Registrar of Companies
A district court in Israel has ruled to impose personal liability on a company’s CEO and director for the company’s accumulated debt to the Registrar of Companies in respect of annual fees, after the company ceased operating, because the CEO and director refrained from opening court proceedings to liquidate the company.
August 28, 2023
Insolvency: Debt Settlements on the Rise
Idan Miller, the coordinator of our firm’s insolvency and corporate recovery practice, was interviewed by Globes about the wave of companies in financial distress. Idan noted that “what we’re seeing in the newspapers is only the tip of the iceberg.” According to Idan, a large number of unpublicized debt settlements are currently underway in contracting, high-tech, and security procurement companies.
August 7, 2023
Barnea: Advising Anise on Corporate Recovery Plan
Idan Miller and Liron Dahan are advising Anise on a corporate recovery plan, after the natural products chain fell into an approximately ILS 22.9 million debt. As part of this process, our firm submitted a request to the district court to appoint a trustee and approve a debt arrangement. Anise’s debts accumulated due to branch expansion and an increase in interest rates. The chain is now working to implement its all-encompassing corporate recovery plan, which includes closing unprofitable branches, closing a packaging plant in Kiryat Anavim, improving efficiency, and further reductions.
July 9, 2023
New Limitations on the Rehabilitation of an Insolvent Company
In a recent ruling in the Bachar Real Estate case, the court prioritized the rights of tenants over insolvent urban renewal companies and created a significant obstacle to the rehabilitation of such companies.Idan Miller the manager of our firm’s insolvency and corporate recovery practice, presents the challenges of the new ruling in an op-ed for Globes.
May 24, 2023
Lecture: Positions and Interests in the Event of Insolvency
Adv. Idan Miller is lecturing to a small business finance risk assessment course. The course is for credit coordinators and business bankers at Israel Discount Bank. The course was organized by the BDO Academy of Finance and the Israeli Institute of Finance (IFI).
May 4, 2023
Attorney-Client Privilege Does Not Apply to Directors of Insolvent Companies
The Israeli Supreme Court has ruled that legal advice given to directors who are members of an audit committee or an independent committee is not protected by attorney-client privilege and that the company (and the trustee who is subrogating for the company) own the legal advice. Consequently, a trustee appointed after a company collapses may receive documents and correspondence exchanged between directors and the company’s attorneys.
April 10, 2023
Insolvency and Late Offers: Idan Miller Op-Ed in TheMarker
Does the ability to make a later offer in insolvency proceeding help creditors to receive more and allow the trustee to conduct a more thorough procedure?
February 2, 2023
Liabilities and Exposures to Claims by an Insolvency Trustee
A worrying number of contracting companies in the real estate and infrastructure market have recently gone insolvent. A contractor’s financial collapse affects not only his creditors, but also the project’s contractee. In an op-ed, Idan Miller explains if insolvency law prevents damage reduction for the contractee.
November 23, 2022
Barnea: Providing Representation in Powermat Shareholders' Dispute
We are providing representation in a shareholders' dispute at Powermat, one of the first startups to develop wireless charging technology. The company holds overs 145 patents, is considered a significant player in the market, and has signed large-scale deals with international companies.
July 27, 2022
Barnea Representing Several Ability Group Cyber Companies
Advs. Zohar Lande and Liron Dahan submitted a motion to initiate insolvency proceedings and temporary operations on behalf of several cyber companies from Ability Group. Ability Group faces debts of approximately NIS 150 million.
February 13, 2022
Nothing Lasts Forever – New Israeli Supreme Court Ruling Expected to Reduce Legal Protection Granted to Managers and Board Members in Israel
After a lawsuit filed by liquidators of a company that collapsed against the company’s former officers, directors, and independent auditors was dismissed in limine, a new Israeli Supreme Court ruling overturned that decision and allowed the liquidators to move forward with the lawsuit, alleging that lack of oversight was what led to the company’s collapse. The significance of this new ruling is that the “business judgment rule” will no longer be interpreted as providing automatic protection to executives, and they may now be compelled to participate in lengthy legal proceedings to prove their entitlement to legal protection.
August 25, 2020
New Ruling Expected to Reduce Managers' Responsibility Following a Company's Collapse
In an important ruling recently handed down, the Tel Aviv District Court rejected a NIS 120 million lawsuit filed by Habas Group against the company's managers. Judge Kabub's ruling constitutes an initial interpretation of a new section of the the Insolvency and Rehabilitation Law, which deals with the degree of responsibility that can be attributed to managers when the company they run becomes insolvent.
May 13, 2020
Legal Options for Israeli Companies Operating in the U.S.
How Israeli companies operating in the U.S. can use COVID-19 as a force majeure and the restructuring of debt in chapter 11 bankruptcy ?
April 19, 2020
Habima Theater – the Show Must Go On?
Our Litigation Department is representing the board of directors and active management of Habima Theater in liquidation proceedings filed by the company's creditors and in legal proceedings directed by the company's temporary trustees.
March 29, 2020
Article: Bond Market Rescue – Debt and Interest Restructuring
The coronavirus crisis is affecting both stock prices and corporate bond prices and yields in the capital market. Zohar Lande, in an article for Bizportal, explains that the Israel Securities Authority must create a “fast-track mechanism” that allows companies to choose to be included in a debt restructuring arrangement subject to the different criteria.
March 19, 2020
Coronavirus: Is a Huge Wave of Debt Arrangement on the Way?
Micky Barnea was interviewed by Globes on the coronavirus’ effect on both the corporate and government bond markets.