Mike Kohan Loses Control of Kohan Properties as Debt Default Triggers Share Transfer

Mike Kohan's shares in Kohan Properties have been transferred to Dekama Finance, owned by businessman Natanel Lorenzi, following Kohan's breach of a loan agreement. The shares, which served as collateral for the loan, were transferred to Dekama Finance to finalize the separation between Kohan and the company. The loan from Dekama was intended to help Kohan repay funds he owed to Kohan Properties. After defaulting on the agreement, Dekama exercised its collateral rights and took possession of the shares.

The share transfer occurs as Kohan Properties attempts to stabilize its financial situation and strengthen its corporate governance. In recent months, the company reported that Kohan had used its funds for personal expenses and for assets not owned by the company. Subsequently, his debt to the company was updated, and he resigned from his management positions.

This week, the company's board announced the appointment of Assaf Ravid to develop a work plan for Kohan Properties. Ravid and his team, along with recently appointed CEO Ran Ben Daniel, will assess the company's condition and formulate steps to improve cash flow. Potential measures include evaluating the sale of pledged assets to bondholders to maximize returns and ensure the company can meet its obligations.

Kohan Properties, which operates in the U.S. commercial real estate sector, raised approximately NIS 412 million through a bond offering in Israel this year. To secure the debt, the company pledged nine U.S. assets, making the ability to sell these assets favorably a key element of the stabilization process. Dekama Finance emphasizes its direct financial interest in the company's success and the full repayment of bonds to preserve the value of the shares it now holds.

Natanel Lorenzi, CEO of Dekama Finance, stated, "We recognize the significant importance of Kohan Properties' commitments to bondholders, and we will support the board in every step that improves corporate governance and company management." He added that Dekama Finance has a "shared interest with bondholders" in the company's success and full bond repayment to maintain its value. Lorenzi expressed confidence that Ravid and Ben Daniel's teams will achieve positive results.