Failed Developer Oren Kobi Seeks Court Review of Debt Payments

Former real estate entrepreneur Oren Kobi, who was previously associated with the collapsed "Adama" real estate group and is undergoing insolvency proceedings, has asked the court to reconsider his financial situation. This follows the Supreme Court's rejection of his appeal against a debt settlement, which he claimed he could not meet. Kobi stated in his filing that he is doing everything possible to remove restrictions and return to work, asserting his earning capacity is currently zero. He argues he cannot afford the NIS 30,000 monthly payment order imposed on him.

Kobi has been involved in bankruptcy proceedings in the Tel Aviv District Court since 2016, facing over 120 debt claims totaling approximately NIS 34 million. Claims against companies he controlled amount to about NIS 239 million. Two creditor settlements were approved but never materialized, leading to his declaration as bankrupt in August 2025.

Parallel to the bankruptcy, Kobi faces criminal charges including creditor fraud and fraudulent registration, stemming from a 2025 indictment. He was released to house arrest with electronic monitoring and is subject to a court order prohibiting him from engaging in any real estate business activities. He maintains a presumption of innocence in the criminal case.

In February 2026, trustee Adv. Hagai Ullman requested a NIS 30,000 monthly payment order, alleging Kobi lives extravagantly and receives financial support from associates. Kobi opposed this, citing his zero earning capacity due to house arrest and the business ban, and stated he lives in an apartment rented by his mother.

In early July 2026, the District Court granted the trustee's request for a temporary NIS 30,000 monthly payment. Kobi appealed to the Supreme Court, arguing the court erred in basing the order on an estimate while his earning capacity was nil. The Supreme Court recently rejected his appeal but allowed for a future review of the payment order once Kobi provides full financial reports.

Kobi recently approached the District Court again, through his attorney Adv. Chen Agbabi, submitting detailed financial reports as directed by the Supreme Court. He claims the trustee refuses to examine these reports or summon him for questioning, leaving him under an impossible payment order. Kobi insists his inability to work is due to legal and practical restrictions, not evasion.

In his filing, Kobi requested the court order the trustee to promptly review his submitted documents, question him if necessary, and provide a reasoned opinion on the payment order's suitability. The filing argues that maintaining the NIS 30,000 payment for someone under house arrest, who has fulfilled his reporting obligations and is seeking legal permission to work, is unreasonable and punitive, contrary to insolvency law.

Kobi stated that he took on NIS 33 million in debt obligations, including company debts, while his personal debts were around NIS 5 million. He questioned how one could face creditor fraud charges after agreeing to such a settlement and is currently negotiating a return to the creditor settlement. He respects the courts but disagrees with decisions, emphasizing his right to present full data and pursue his legal rights. He believes a practical economic solution should be considered given the ongoing negotiations for a significant creditor settlement. Kobi also stated he is no longer conducting business in Israel and is focusing on international ventures. He also believes the criminal case against him is weakening and that a full review of evidence will reveal the truth.