Former Israeli Business Tycoon Nochi Dankner Declared Bankrupt After Decade of Debt Struggles
On Wednesday, a six-page court order dramatically altered the life of Nochi Dankner, once a leading figure in Israel's business sector. Judge Nurit Tabiv-Mizrahi of the Tel Aviv Magistrate's Court issued a bankruptcy ruling against Dankner, marking the end of his decade-long effort to avoid insolvency. Dankner acknowledged in court that he has effectively been insolvent for over ten years and accepted the court's decision.
Dankner's debts originally totaled approximately 510 million shekels, mostly due to personal guarantees he provided for loans taken by private companies through which he controlled the IDB Group, including Ganden and Tomahawk. Part of the debt also stems from guarantees related to his cousin, former Bank Hapoalim chairman Danny Dankner. Following IDB's collapse in 2016, Dankner signed a debt arrangement with banks, committing to repay 180 million shekels by March 2024 and additional amounts from future income. To date, he has repaid about 110 million shekels.
Despite the arrangement, banks requested bankruptcy proceedings after realizing that future income projections were unlikely to materialize, especially as repayments mainly came from the estate of Dankner's late father. Initially opposing the bankruptcy request, Dankner surprised the court by withdrawing his opposition, with his lawyer stating they would comply if that was the banks' wish.
The court imposed immediate personal restrictions on Dankner, including a ban on holding a passport or leaving Israel without court approval, prohibitions on using credit cards without trustee consent, and limitations on corporate involvement. He must maintain a positive bank balance without credit, report regularly to the appointed trustee on his expenses and assets, and any ongoing lawsuits against him are frozen unless the judge permits continuation.
A hearing is scheduled for September 2027 to review Dankner's repayment progress and potentially establish a detailed economic rehabilitation plan. After up to three years of rehabilitation, he may be discharged from remaining debts. Both Dankner and the banks expressed willingness to negotiate a new debt arrangement, likely involving the sale of the "Ivory House," a commercial property in Jerusalem currently under negotiation with a potential buyer.
