Bankrupt Developer Seeks Lower Payments, Cites Zero Earning Capacity

Real estate developer Oren Kobi, who previously operated the collapsed Adama Land marketing group, has asked the Tel Aviv District Court to reconsider a temporary payment order requiring him to transfer NIS 30,000 monthly to the bankruptcy estate. Kobi, declared bankrupt in August 2025, claims he cannot meet this payment due to his current "completely zero" earning capacity, citing his house arrest and a court order prohibiting him from engaging in real estate business activities.

His request follows the Supreme Court's recent rejection of his appeal against the payment order itself, though the court noted that the amount could be re-examined once full financial data is submitted. Kobi's bankruptcy proceedings began in 2016, with over 123 debt claims totaling approximately NIS 34 million filed against him, in addition to NIS 239 million in claims against companies he controlled. Two creditor arrangements were approved but never materialized.

Kobi also faces criminal proceedings, including an indictment from 2025 for offenses such as creditor fraud and corporate record falsification. He was released to house arrest with electronic monitoring as part of the criminal case, and remains under a judicial order barring him from business activities in real estate. He maintains his presumption of innocence.

In February 2026, trustee Adv. Hagai Ulman requested the NIS 30,000 monthly payment order, alleging Kobi maintained a lavish lifestyle and received assistance from associates. Kobi opposed this, asserting his earning capacity was nil due to house arrest and the business ban, and that he lived in a rented apartment paid for by his mother. The District Court granted the trustee's request in early July.

Kobi appealed to the Supreme Court, arguing the lower court erred given his zero earning capacity. The Supreme Court rejected the appeal about a week ago but allowed for a future re-examination of the payment order based on full financial reports. Kobi recently submitted these reports to the District Court, asserting the trustee refuses to examine them, hindering a review of the payment order and leaving him under an "impossible" obligation. He stated his inability to work is legally mandated, not an evasion.

Kobi's application asks the court to direct the trustee to immediately review his submitted reports, summon him for questioning if needed, and provide a reasoned opinion on the payment order's suitability. He argues that maintaining the NIS 30,000 payment for someone under house arrest, who is actively seeking legal permission to work and has fulfilled his reporting obligations, is unreasonable and constitutes undue punishment contrary to insolvency law.

In a statement, Kobi claimed he assumed NIS 33 million in total liabilities under a creditor arrangement, including company debts, with his personal debts at NIS 5 million. He questioned how one could face creditor fraud charges after agreeing to such a settlement. He stated negotiations are ongoing to return to the creditor arrangement and that he respects the courts but disagrees with decisions, intending to present all data and exercise his rights. Kobi added that he is building international business activities and no longer operates in Israel. He also believes his criminal case is weakening and denies the charges.