Tel Aviv Magistrate’s Court on Wednesday issued an insolvency order against former IDB controlling shareholder Nochi Dankner, after the banks that lent to him asked the court to do so and Dankner withdrew his objection during the hearing. Judge Nurit Tavy-Mizrahi accepted the banks’ request and said the banks and Dankner may approach the Justice Ministry’s insolvency commissioner about the timing of a trustee’s appointment. The parties also asked for 30 more days to hold talks on a fresh repayment arrangement.
The petition was filed by Bank Leumi, Bank Hapoalim, Mizrahi Tefahot Bank and Discount Bank in April, after they said Dankner failed to meet the updated debt agreement reached in December 2025. The banks argued that he had repeatedly breached commitments and received four payment deferrals since the original 2016 deal, in July 2017, June 2019, August 2020 and July 2023. They said insolvency was now the best way to protect creditors and maximize repayment.
Dankner’s lawyer told the court at the start of the session, “We bow our heads and say, if that is what [the banks] want, that is what will be.” Dankner asked that any trustee not begin work immediately, so negotiations could continue. He told the judge that he had been insolvent for “ten years or more,” had sold his home, relied on large family and friend support, and pledged his rights in his father’s estate, whose main asset is Beit HaShenhav. He said he was on the way to meet a buyer for that property and wanted a quick discharge.
In a statement before the hearing, Dankner said he had “done my best” to repay his debts over about a decade, had already paid about 110 million shekels, and had given up all rights in his father’s estate. He added, “I am lowering my hands, because I gave all I have,” and said he is now willing to give even more. The banks said his total debt to them, stemming mainly from guarantees on IDB loans, was about 510 million shekels, and the original deal required him to repay 180 million shekels, with the rest from future income. Under the updated agreement, he was to pay 5 million shekels immediately and pledge his inheritance rights, but he paid only about 2.5 million shekels. Dankner is 71, and the court case will now move toward appointment of a trustee and further talks.
