In an important and precedential decision received yesterday at the Tel Aviv yafo District Court by Judge Iris Lushi-Aboudi, in which the Court conceded to the application by a group of 14 companies in the field of real-estate to convening assemblies and stay of proceedings, in requirement of precedential issues such as the application of Amendment 4 of the Insolvency Law to companies whose difficulties were not necessarily formed as a result of the Covid crisis, the court determined that Amendment 4 of the Insolvency Law enables the consolidation of settlements for debtors (corporations and individuals) whose difficulties were not necessarily created as a result of the Covid crisis. 

The court accepted our firm’s argument that the application of Amendment 4 is not subject to the affiliation between the Covid Crisis and the difficulties the debtors encountered, and clarified that the purpose of the amendment is to extend the possibility of consolidating settlements – for this who were in difficulty even prior to the Covid crisis as well – and that creditor settlements were preferable in appropriate cases to regular insolvency proceedings. 

The applicants were represented by lawyers Amit Lederman and Dorit Karny from the Insolvency, Creditor Settlements and Companies Recovery Department at our firm. 

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