The Court appointed a receiver to enforce the Fishman liens in favor of Union Bank

Judge Eitan Orenstein appointed advocate Assaf Englard, counsel for the Bank, as receiver to enforce foreclosure of the liens. Fishman’s debts to Union Bank stand at 215 million shekels

15.11.16| Naomi Zoref

The District Court this morning (Tuesday) appointed a receiver to enforce foreclosure of the liens of Eliezer Fishman in favor of Union Bank of Israel.

The judgment handed down by the President of the Court, Judge Eitan Orenstein, rules that Fishman’s shares in Jerusalem Economic and in the fuel company “TEN” shall be transferred to the receivers for foreclosure. The Judge appointed Adv. Assaf Englard, the Bank’s counsel, as receiver to foreclose the liens. Fishman’s debts to Union Bank total 215 million shekels.

About one month ago, the Court confirmed enforcement of the liens of Eliezer Fishman in favor of Bank Leumi, including Fishman’s holdings in “Globes”.

In late September, at the end of a hearing before Judge Orenstein, Fishman was given an extension of 60 days in order to reach a composition with creditors. This was done as part of bankruptcy proceedings launched by the Tax Authority in view of a debt to it of approximately 196 million shekels.

Other creditors joined the bankruptcy proceedings, including Bank Hapoalim, which claims a debt of 1.8 billion shekels, Bank Leumi which claims a debt of 1.2 billion shekels, and Bank Mizrahi to which there is a debt of approximately 281 million shekels. Overall, according to the creditors, Fishman’s debts are estimated at over 5 billion shekels.

In response to the application to have him declared bankrupt, Fishman, who is represented by Adv. Shalom (Shuli) Goldblatt, proposed a mediation proceeding for disposition of his holdings and assets. Accordingly, he asked for – and received – an extension of 60 days in order to formulate an arrangement.

The Union Bank application, which was filed before the Holidays by Adv. Englard of law firm Hamburger Evron & Co., which, as mentioned, was granted by the Court, states that it was being filed “in view of the collapse and insolvency” of Fishman and the companies and “their inability to meet their obligations to the Bank and to repay their debts”. It also says that without the appointment of a receiver and without foreclosing the liens, irreparable damage would be caused to the assets pledged to the Bank.

The source of the debt, according to the Bank, is in loans and credits to the companies “Fishman Management” and “Kedai Financial Consultants”, both of which are companies under Fishman’s control. In addition, the Bank also extended personal loans to Fishman. It was further stated that Fishman, who heads the Group, personally guarantees all of the liabilities of the companies to the Bank.

“Under these circumstances,” reads the application, “and at a time when both the debtors and the pledging companies have fallen into insolvency and are all, as the entire Fishman Group, on the verge of collapse and beyond, there is an urgency to act immediately in order to protect the property interests of the Bank by way of appointing a receiver on behalf of the Bank”.