Court Grants Luxury Car Dealer 'Buy and Drive' Debt Restructuring Stay

The Central District Court has granted a temporary halt to legal proceedings for the luxury car dealership "Buy and Drive Holdings," allowing it to pursue a debt settlement. The court order provides the company with "industrial quiet" to implement its debt arrangement without facing new lawsuits. Judge Hannah Kitzis appointed two trustees, Adv. Avner Cohen and CPA Chen Bar-Tzedek, to oversee the company's financial situation, ensure proper management, and protect its assets.

The court also issued a 45-day stay of proceedings for the company and its shareholders, Uri Dgami and Yitzhak Maya. "Buy and Drive," a long-standing player in the Israeli automotive market since 1997, had previously filed an urgent request for the stay and approval to convene creditor meetings to finalize a debt settlement. As of the filing, the company's liabilities totaled approximately NIS 97 million.

Previously, in January 2026, it was reported that the dealership had debts of around NIS 100 million. In May, it was noted that due to financial difficulties, "Buy and Drive" was selling real estate and leasing operations for tens of millions of shekels. The company, which expanded into new and used car sales, leasing, rentals, and trade-ins, reported a turnover exceeding NIS 600 million in 2022, with a fleet of about 1,100 vehicles.

According to the filing, the company faced significant challenges starting in late 2022 and throughout 2023, including rising interest rates, high financing costs, new competitors, electric vehicles, and the economic impact of the "Iron Swords War." This led the management to initiate a comprehensive restructuring plan for nearly a year, involving reduced leasing activities, employee layoffs, and repayment of bank debts.

The recovery plan hinges on a binding agreement to sell its Netanya property for NIS 51 million plus VAT to Miyara Finance. This sale is expected to cover secured debts and leave an estimated surplus of NIS 10 million for other creditors. The Netanya property, which serves as the company's operational hub, includes a showroom, offices, and operational areas. The judge's decision mandates that the trustee proceed with the property sale.