Global Net Seeks Debt Arrangement Amidst 46 Million Shekel Claims
Translated & summarized from Calcalist by baba
Global Net Israel, an investment marketing firm, is seeking court approval for a debt settlement plan after entering liquidation. The company faces claims totaling approximately 46.2 million shekels. The proposed plan relies on 6 million shekels from insurers and 16.9 million shekels in uncollected commissions from foreign funds, with no capital injection from owners. The settlement requires creditor and court approval and aims to resolve issues stemming from significant investor losses in funds marketed by the company.
The story in 6 lines · by baba
- Global Net Israel seeks court approval for a debt settlement plan amidst 46.2 million shekel in claims.
- The plan relies on 6 million shekels from insurers and 16.9 million shekels in uncollected commissions.
- No capital injection is expected from the company's controlling shareholders.
- The company collapsed after marketing foreign funds that caused significant investor losses.
- The Israel Securities Authority revoked the company's license in July 2025 due to severe operational deficiencies.
- The company was ordered into liquidation last August after failing to repay a debt.
Global Net Israel, an investment marketing firm controlled by Dan Dubri, has asked the Tel Aviv District Court to approve a creditors' meeting to advance a debt settlement. The company entered liquidation proceedings last August. According to a filing submitted by the company and its appointed trustee, Adv. Alona Bomgarten, Global Net and its subsidiary face claims totaling approximately 46.2 million shekels, along with two class action lawsuits.
The proposed settlement plan, presented to Judge Iris Lushi-Aboudi, does not involve capital injections from the controlling shareholders. Instead, Global Net aims to fund the arrangement with 6 million shekels from insurance companies and an estimated 16.9 million shekels in commissions from foreign investment funds whose products it previously marketed. Some of these commissions are yet to be collected, and the company acknowledges that legal action may be necessary for some.
Among the funds from which Global Net seeks to collect are Montero, which it claims owes 6.4 million shekels, Bonart, from which it seeks 5 million shekels, and FHL, which it states owes 750,000 shekels. Montero and FHL were previously involved in a scandal due to significant investor losses.
Insurance companies have set a condition for their participation: The Phoenix, which insured the subsidiary's professional liability, agreed to provide 5 million shekels, and insurers of directors and officers added 1 million shekels. However, these payments are contingent on final approval of a settlement that includes a release from claims against the insurers. The plan also seeks to extend this release to shareholders, managers, employees, and agents, preventing further lawsuits against them for past events.
Under the plan, lenders and suppliers, owed an estimated 4.7 million shekels, will have priority over civil claimants. Dubri and other executives are expected to assist in collecting commissions and may receive compensation based on collection success. The proposed settlement could span five years, with a possible two-year extension, and requires approval from creditors and the court.
Global Net's collapse followed issues with foreign investment funds it marketed to Israeli clients, notably Montero and FHL, which resulted in substantial investor losses. In July 2025, the Israel Securities Authority revoked the subsidiary's investment marketing license due to severe operational deficiencies, including marketing risky investments to unsuitable clients and failing to disclose conflicts of interest. Subsequently, investor lawsuits were filed, leading to liquidity problems. Last August, the court ordered its liquidation after it failed to repay a 330,000 shekel debt to a private lender, despite extensions.