Insolvency, Receivership and Liquidation

Erdinast, Ben Nathan, Toledano & Co. is a leading firm in Israel in the practice area of Insolvency & Restructuring.
The heads of the department, Raanan Kalir and Alon Binyamini, have a vast of experience in the field of debt settlements and insolvency, including the management of insolvency proceedings, liquidations, receiverships and debt settlements amounting to billions of NIS.

The fields of Insolvency & Restructuring require expertise and a deep understanding of several areas of law, including insolvency law, corporate law, financing, securities, directors and office holders liability, litigation and more. The partners and lawyers in the department have professional experience in these fields and are recognized among the returning players in this field in Israel, including the leading institutional bodies, banks, bond trust companies, and representatives of the relevant authorities.

Our department has handled hundreds of insolvency cases and financial difficulties leading to insolvency of public companies, on behalf of the creditors (mainly bondholders) amounting to billions of NIS.

Furthermore, we are experienced in representing investors in companies in difficulty or insolvency and have led complex and large transactions to acquire control of public and other companies in difficulty, debt settlement or in insolvency proceedings (liquidation, stay of proceedings, receivership, etc.).
The department has vast experience in conducting complex litigation proceedings related to insolvency, including conducting investigations, filing lawsuits as liquidators, representing officers and other parties in class action lawsuits and litigation proceedings against them following a company collapse.

In addition, we are highly experienced with the international aspects of insolvency. This includes dealing with insolvency cases of corporations outside Israel that have issued debentures in Israel, representing various entities including creditors who are barred outside of Israel in insolvency incidents in Israel and providing support and assistance in legal proceedings conducted outside Israel in connection with insolvency of companies in Israel.

The heads of the department are appointed by the courts as functionaries, liquidators, receivers and trustees in stay of proceedings, and are regularly ranked as leading practitioners in the field of insolvency by the various ranking guides.

In the field of real estate, our department has special expertise when it comes to foreclosure in real estate projects. This expertise relies on extensive experience as representatives of banks and an in-depth understanding of the real estate market, planning and zoning.

• Acting for the receivers in the insolvency of Discount Investment Corporation (DIC), one of the most prominent and largest insolvency cases in Israel. Following our representation, the controlling shares of DIC were bought for almost NIS 1 billion.
• Acting for the holders of Delek Group’s debentures in one of the most significant and high-profile matters in Israel. With the company facing NIS 6 billion in debt, we successfully and positively transformed the position of the bondholders, and in record time.
• Representing the bondholders of Israel Petrochemical Enterprises, a major holding company, in connection with a creditors’ arrangement and the restructuring of a NIS 2 billion debt.
• Advising the bondholders of IDB Development Series14, with bonds valued at approximately NIS 1 billion.
• Acting for the Directors of Brookland Upreal Ltd. in the first insolvency case concerning a company that has raised funds in Israel through a bond issuance for investment in real estate in the US. We are acting in the class action in this matter, as well as proceedings in the US.
• Representing the underwriter in the IPO of Canadian company, Urbancorp, which had issued debentures in Israel, in several legal proceedings in both countries, including an application for approving a class action filed by the Trustee in Israel.
• Acting in a first-of-its-kind unique debt settlement in Israel with a US company (Medley Capital). This matter was made all the more complex by the presence of the company’s assets in the US, while the settlement between the company and its bondholders took place in Israel. Following a favorable settlement, the bonds were soon paid in full.
• Representing the purchaser of IDB Group, Israel’s largest conglomerate, in insolvency proceedings, which included the restructuring of approximately NIS 2 billion debt.
• Acting for the buyer of the Blue Square Group, a distressed group of companies, including the restructuring totaling approximately NIS 1.2 billion.
• Representing the bondholders of Kardan NV, a Dutch corporation, whose main activity is in China, which issued bonds in Tel Aviv amounting to NIS 2 billion, in connection with achieving a number of arrangements.
• Representing the bond holders of ADO, a corporation operating in Germany, which raised bonds in the Tel-Aviv stock exchange in the amount of NIS 1 billion, in all aspects of the debt arrangement.
• Representing a German creditor vis-à-vis the Israeli public company Matomy, which issued debentures in Israel, in its arrangement with various creditors.