Israeli Supreme Court Upholds Order for Oren Kobi to Pay $8,200 Monthly to Bankruptcy Estate
The Israeli Supreme Court has rejected a request by former real estate developer Oren Kobi to appeal a lower court's decision, ordering him to pay NIS 30,000 (approximately $8,200) monthly to his bankruptcy estate. Justice Alex Stein dismissed Kobi's appeal, upholding a Tel Aviv District Court ruling that also lifted a temporary order preventing proceedings for his arrest due to non-compliance with court orders. Kobi faces multiple indictments dating back to 2020, primarily concerning fraudulent sales of agricultural land, alleged to have been misrepresented as being on the verge of settlement. He is also accused of defrauding creditors, threats, and extortion.
Kobi's insolvency proceedings began in 2016, with claims totaling NIS 34 million against him personally and NIS 239 million owed by companies he controlled. He failed to adhere to two creditor arrangements and was declared bankrupt last year. The appointed trustee, Adv. Hagai Ullman, requested the NIS 30,000 monthly payment, citing Kobi's alleged extravagant lifestyle, including luxury apartments, high-end vehicles, and expensive legal representation, despite Kobi claiming to be destitute and living with his mother.
The District Court had previously sided with Ullman, noting Kobi's bad faith, asset concealment, and lavish spending at the expense of creditors over 6.5 years without any payments. Ullman also sought Kobi's arrest for disobeying court orders; Kobi is currently under house arrest with electronic monitoring.
Justice Stein emphasized the broad discretion of insolvency courts in setting payment orders, stating that appellate courts rarely intervene unless in exceptional circumstances. He noted that the lower court's decision was well-founded given Kobi's conduct as a bankrupt who had not contributed to the estate for years and failed to provide evidence of his financial situation. Stein added that the payment order is temporary and can be re-evaluated once Kobi provides full financial reports, based on thorough investigation rather than estimation.
