A Tel Aviv magistrate’s court will hear on Wednesday the request by Bank Leumi, Bank Hapoalim, Mizrahi Tefahot Bank and Israel Discount Bank to open insolvency proceedings against Nochi Dankner and declare him bankrupt. The banks, former creditors of the ex-control shareholder of IDB, say he failed to comply with an updated debt arrangement reached with him in December 2025. The petition was filed in April and will be heard by Judge Nurit Tabib Mizrahi.
In their filing, the banks said Dankner was given “many opportunities” to repay his debt but repeatedly breached his commitments and sought further delays. They argued that all options have now been exhausted, and that insolvency proceedings are the best way to protect creditors and maximize repayment. The banks asked the court to appoint a trustee for Dankner’s assets, saying the move would best serve all creditors.
Most of Dankner’s debt stems from personal guarantees he gave on loans for companies through which he controlled IDB. The total debt is about 510 million shekels. Under the original decade-old arrangement, he was to repay 180 million shekels, with the rest covered by future income until the end of his life. So far, he has repaid about 110 million shekels. The banks said they already granted him four payment extensions, in July 2017, June 2019, August 2020 and July 2023.
Under the updated deal, Dankner was to pay 5 million shekels immediately, pledge all rights in his late father Yitzhak Dankner’s estate, and allow an outside supervisor to oversee the sale of the estate’s main asset, the Beit Hashenah building in Jerusalem. The banks valued his rights in that asset at 90 million to 150 million shekels. They said he has managed to pay only about 2.5 million shekels beyond the initial amount, prompting their court request.
Dankner opposed the petition, saying there is no justification for opening insolvency proceedings because of the steps he has already taken, including pledging his inheritance rights. He proposed talks before the insolvency commissioner or mediation before a retired judge to reach a fair and efficient restructuring or settlement for all creditors. He also said that at 71, he can no longer meet the repayment schedule, and described the effort to repay the debt as a Sisyphean task. The banks replied that he should not receive special treatment and said they would consider talks only after the court opens proceedings and if those talks do not delay them.
