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Insolvency proceedings below NIS150,000 will be administered entirely by the Enforcement and Collection Authority.

Insolvency proceedings above NIS150,000 will be conducted before the official receiver (the Insolvency Commissioner) and, if relevant, before the court with respect to further, more specific matters.

Simultaneously, with the issue of the order for the commencement of insolvency proceedings, the Insolvency Commissioner shall appoint a trustee for the debtor and an audit will be carried out, in which the debtor’s economic capability and his conduct will be examined (lasting approximately 12 months).

At the end of this audit a payment plan is established, at the end of which the debtor will receive a discharge. The default scenario is a payment period of three years, however, the court reserves the right to increase or decrease the period depending upon the circumstances of the case. If the debtor has no proven financial ability to pay the creditors, he may be granted an immediate discharge.

Order of Repayment

Under Israeli law, generally speaking the order of repayment in insolvency proceedings is as follows:

Creditors secured by a fixed charge
Expenses of insolvency proceedings
Preferred creditors
Creditors with a floating charge
Ordinary creditors
Deferred creditors and shareholders
The new law does not modify the repayment order but makes changes in relation to each of the groups. The following explains the principal changes:

Fixed charge secured creditors

A creditor secured by a fixed charge is required to submit a debt claim. In cases whereby the value of the charged asset is clearly higher than the debt, the asset will be realised by the trustee.

In addition, late-payment interest accrued on the debt after the date of the issue of the commencement of proceedings order cannot be collected from the charged assets.

Floating charge creditors

The law provides that a creditor secured by a floating charge shall be entitled to only 75% of the proceeds of realisation of the assets subject to the floating charge. Thus, the law transfers 25% of the value of the floating charge to ordinary creditors (subject to a transitional provision prescribed with respect to existing charges).

Preferred creditors taxes

The law substantially reduces the scope of the preference accorded to the tax authorities. Under existing law, the tax authority was entitled to be treated as a preferred creditor in respect of one tax year of its choice. The new law restricts the preference of the tax authority only to debts pursuant to voluntary debt settlements with the debtor regarding tax arrears. The preference for such debts is restricted to a maximum of three tax years.

Directors’ and CEO’s liabilities
The law allows the court to impose liability on a director or general manager that knew, or ought to have known, that the corporate entity was insolvent and did not take reasonable steps to reduce potential

Hi all,

Not posted for a while, well no reason to. Please see information below ref Insolvency & Rehabilitation law. It's easily accessible online.

The Israeli parliament passed the Insolvency and Rehabilitation Law, 2018 (the law) on March 5, 2018, and it will come into force on September 15, 2019. The law offers a comprehensive reform and provides Israel with modern insolvency legislation dealing with both individual and corporate insolvency.

Aims

For individuals, the law promotes the economic rehabilitation of the individual as the fundamental goal of the insolvency proceedings, emphasising effective reintroduction into the economy.

For corporate insolvency, the focus, where possible, is also on rehabilitation.

Another principal objective of the law is to increase the amount to be repaid to creditors, with additional emphasis on the amount to be paid to unsecured creditors.

Proceedings for corporations

Under the law, a creditor or a debtor wishing to initiate insolvency proceedings must file a standard application to obtain a commencement of insolvency proceedings order. The court will determine whether to channel the corporate entity into a course of rehabilitation or winding up. This decision depends on the economic status of the entity and is independent of the manner in which the application has been drafted.

Upon issue of the order by the court for the initiation of insolvency proceedings, an automatic stay of proceedings will apply. If the court chooses to operate the corporate entity with a view to its economic rehabilitation, a stay of proceedings will also apply against the secured creditors, subject to adequate protection in order to safeguard the value of their security.

Simultaneously with the issue of the order, the court will appoint a trustee to be entrusted with full control of the company’s assets.
As part of the legislative processes, certain parties proposed that a corporation’s assets remain in place and the insolvency process resemble the United States’ debtor in possession (DIP) mechanism, but this was ultimately vetoed by the Knesset.

Nevertheless, the law does create a new mechanism entitled protective negotiations, with traits not dissimilar to the DIP, although this is a temporary provision to be in effect for four years. This mechanism allows a public company to initiate out-of-court protective negotiations with its creditors while allowing it to remain active and without appointment of a trustee. During the period of the protective negotiations, a complete stay of proceedings shall not apply but the creditors may not file an application for an initiation of insolvency proceedings order against the corporation and may not call for the immediate repayment of debt.

Proceedings for individuals

Under the updated law, a substantial part of the administration of insolvency proceedings relative to individuals passes from the court to administrative authorities.

Insolvency proceed

As I mentioned the other day, this might not be curtains for Bagir.
DYOR

Agreed Draft - suspension is the best thing the company have done lately. This might not be over yet.
DYOR

This might not be the end.
Trousers haven't been pulled down just yet.

Company isn't in administration.
-Big Ben Ezry could come up with a deal and this could remain on the stock market.
-Payout from Ruyi following court proceedings however that could take ages.
-Another large invested may get involved

DYOR

Next TR-1
18%
DYOR

Don't be fooled by today's rise. The markets were up a tad and this got dragged up with it. It can soon come crashing down.
DYOR

PROP5... Who is talking garbage?

This is when the likes of Netflix, Amazon etc really come in to play.
Times have changed and it's no longer the 1900's.
DYOR

*I think we'll see 30's before 90's.
DYOR

90p is very optimistic. Those targets are set 12-18 months in the future. No one is going to the cinema anytime soon!
DYOR

He's still loading up!
I was half expecting a reduction in his holdings to come out due to the COVID19 / Ruyi.

This really is promising....
DYOR

The market is down all over and it's dragging this one down with it. BAGR is already priced for failure, I believe this will be one of the last periods we'll see below 1p.
Watch this space.
DYOR

Another holdings update will probably hit very soon!
DYOR

Remember, there's little stock available to the general public. MM will do all they can to hold this down.
Even if this was at double the current price of 0.6, it would still be too cheap.
DYOR

He's built up a nice holding. Will he continue loading up?
This is a decent company away from Rui. A lump sum of a few million from court settlement would probably rocket this share.
DYOR

Should be a steady rise up.
DYOR

Finally, an RNS that isn't a holdings one!

Time to.......
DYOR

Really positive update today. 2020 seems another year for growth.
DYOR