Tel Aviv Stock Exchange Halts Trading in Kohan Properties Bonds
Translated & summarized from Ice by baba
The Tel Aviv Stock Exchange has suspended trading in Kohan Properties' Series A bonds due to significant uncertainty about the company's financial status and collateral. The American real estate firm faces legal claims challenging its rights to assets pledged to bondholders. The company also announced delays in filing its financial reports for the second and third quarters of 2026. The stock exchange will review the situation on December 15 if trading is not resumed.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange suspended trading in Kohan Properties bonds due to financial uncertainty.
- Third parties are challenging Kohan Properties' rights to assets pledged as collateral for bondholders.
- The company faces delays in publishing its second and third quarter 2026 financial reports.
- Amos Luzon recently agreed to purchase the company for NIS 19.5 million.
- The stock exchange board will decide on the bonds' future on December 15.
The Tel Aviv Stock Exchange announced on Tuesday the suspension of trading in the Series A bonds of the American real estate company Kohan Properties. This action was taken following an unusual report released by the company that raises significant uncertainty regarding its financial condition and the validity of collateral for bondholders.
Just last month, Amos Luzon decided to purchase the company for NIS 19.5 million, a week after Natanel Lorenzii took control of the company's shares. Luzon acquired the company in partnership with Oren Halfon's Alpha Fencing company, with Luzon buying 60% and Alpha acquiring the remainder. Kohan had issued bonds in Tel Aviv earlier this year.
Reports later emerged that Mike Kohan allegedly took money without authorization for his private business dealings, leading bondholders to take action against him. He subsequently pledged the shares to Natanel Lorenzii, which preceded the sale transaction. The drama surrounding the company began in late October when Kohan reported a significant error in its second-quarter 2026 financial statements requiring correction.
On Monday, it became clear the problem was far more serious. The company disclosed in a filing that third parties have raised claims, both in writing and through legal proceedings, challenging its rights to certain assets and the companies holding them. Crucially for investors, these disputes involve assets pledged as collateral to the company's bondholders. Kohan stated there is ambiguity regarding ownership, financing, and collateral for some assets and that it is conducting a thorough investigation with its US attorneys.
As a result of this complex investigation, Kohan announced it cannot meet the Israel Securities Authority's deadlines. It will not publish the corrected second-quarter financial reports on time and anticipates it will also miss the deadline for the third-quarter 2026 reports. The company has no estimated timeline for releasing the full reports. Consequently, the stock exchange decided to suspend trading in Series A bonds to protect investors. If the company fails to meet the conditions for resuming trading in the coming weeks, the matter will be brought before the stock exchange's board of directors on December 15. Bondholders can submit their claims in writing by December 8.