British Lender Seizes Control of Kohan Property, Threatening Israeli Bondholders

Kohan Property, an American real estate firm that raised debt in Israel, is facing a severe crisis after its controlling shareholder, Mike Kohan, defaulted on a personal loan. The lender, UK-based Dekama Finance Limited, has seized 100% of the company's shares held by Kohan as collateral.

The default occurred because Kohan pledged all his shares in the company as security for a personal debt to Dekama. Following his failure to meet his obligations, Dekama exercised its right to seize the collateral. The exact amount of the personal debt was not disclosed.

The change in control has already led to a shake-up in the company's board of directors. Dekama has replaced Kohan, Alan Assil, and Ariella Avizadeh with Daniel Buritz as a director. Kohan had already resigned from the board on September 27.

This situation poses significant risks for Israeli investors. Kohan Property raised 412 million shekels in March through its first bond issuance in Tel Aviv. The company is currently assessing whether this change of control triggers a clause allowing bondholders to demand immediate repayment of the debt.

The company, established in August 2025 in the British Virgin Islands, aimed to raise debt in Israel to refinance more expensive debts in the US. It transferred 17 assets to the BVI entity, eight of which were pledged to bondholders. The company primarily holds commercial centers in the US.

The crisis surfaced in July, just four months after the bond issuance, when it was revealed that Kohan had misused at least $9.6 million of the bond proceeds to repay loans on assets not belonging to the company. Further investigation revealed the misused amount was larger, totaling $15.5 million. Kohan had previously attempted to reassure investors, calling the misuse an "honest mistake" due to an inadequate management structure, and promised to improve controls and hire professionals familiar with the Israeli capital market.

Despite these assurances, further revelations emerged. By late July, Kohan still owed millions of dollars to the company, a debt that stood at approximately $4 million in early September. He paid $2 million in cash and pledged to settle the remainder with asset rights. Two weeks later, an additional debt of $2.7 million was uncovered.

Kohan Property's situation mirrors that of Simad, another relatively new BVI company that raised hundreds of millions of shekels from Israeli investors and faced a crisis shortly after its IPO. Simad's controlling shareholders were found to have withdrawn approximately 100 million shekels from company accounts. If Israeli bondholders of Kohan Property demand immediate repayment, it could lead to the company's insolvency.