Jerusalem Builder Neta Lipschitz Faces Bankruptcy With 44 Million Shekel Debt
Translated & summarized from Ice by baba
Jerusalem construction company Neta Lipschitz has been placed under court-ordered proceedings due to accumulating debts of approximately 44 million shekels. The company failed to pay employees for two months and has dismissed most of its workforce. A permanent trustee has been appointed to assess rehabilitation possibilities or a swift sale, with employees' legal representatives seeking prompt payment of dues.
The story in 5 lines · by baba
- Neta Lipschitz construction company faces bankruptcy with debts of 44 million shekels.
- The company failed to pay employees for August and September.
- Most of Neta Lipschitz's workforce has been dismissed.
- A permanent trustee was appointed by the Jerusalem District Court.
- The trustee will evaluate rehabilitation or a swift sale of the company.
Jerusalem-based construction firm Neta Lipschitz, operating for approximately 30 years, is facing severe financial difficulties. The District Court in Jerusalem has ordered proceedings to commence and appointed attorney Amit Pines as a permanent trustee to manage the company.
The company has accumulated debts totaling around 44 million shekels to hundreds of suppliers and subcontractors. Furthermore, it has failed to pay its employees for August and September. Neta Lipschitz is unable to meet its financial obligations, leading to the dismissal of most of its workforce.
The trustee will assess the possibility of rehabilitating the company, while also recommending a swift and focused sale process. The company claimed it was stable and profitable until the outbreak of the "Swords of Iron" war, with 2023 revenues reaching approximately 142 million shekels. However, subsequent difficulties led to its filing for insolvency.
Neta Lipschitz had requested creditor protection in early October, seeking a temporary trustee to maintain operations and preserve assets. The financial crisis is attributed to debts owed to various creditors, including Bank Hapoalim, as well as commitments to suppliers and subcontractors. Owner loans amounting to about 29 million shekels were also reported.
A key asset for the company was the "Ganei HaYovel" urban renewal project in Jerusalem, comprising five buildings with 226 housing units, a kindergarten, and commercial spaces. However, the project's developer, Karsu Real Estate, contracted Danya Cebus to complete the work after terminating Neta Lipschitz's involvement, which represented the company's primary remaining activity. The trustee's final report will evaluate the company's economic rehabilitation prospects.
They noted that the court's decision facilitates their pursuit of employee rights.
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