Israeli Real Estate Giant Collapses Under $95 Million Debt

Israeli capital markets are reeling from another blow in the American real estate sector as Mike Kohan, founder and controlling shareholder of Kohan Properties, has lost his entire 100% stake in the company. This occurred after he defaulted on personal debt obligations. The creditor, UK-based Dekama Finance, owned by Natanel Lorenz, exercised its security rights and seized control of the company, which manages commercial centers in the United States. This takeover, approved by legal advisors in the British Virgin Islands, has caused significant management upheaval. Kohan's appointed directors, including Alan Assil and Ariella Avizadeh, have been replaced by Daniel Buritz. Attention is now focused on the company's bondholders in Israel. Kohan Properties, which raised approximately 412 million shekels (about $110 million) on the Tel Aviv Stock Exchange just last March, is assessing whether this rapid change in control triggers an immediate repayment clause for its debt. Such a scenario could quickly lead the company to insolvency. This dramatic turn of events is the culmination of a series of corporate failures. Just four months after its IPO, it was revealed that Kohan had withdrawn $15.5 million from the raised capital to cover personal asset loans. Although Kohan claimed it was an "honest mistake" and returned some funds, subsequent investigations uncovered additional significant personal debts to the company totaling millions of dollars. This case follows a worrying pattern of British Virgin Islands-based companies raising substantial funds from Israeli investors, only to face financial collapse shortly thereafter, similar to the recent case of Simed. Despite the loss of confidence and management turmoil, Kohan's public debt is currently valued at around 370 million shekels (approximately $95 million), and investors must now urgently decide on their next steps.