Beersheba Court Rejects Trustee’s 2.5 Million Shekel Claim in Real Estate Dispute
The Beersheba District Court, led by Judge Yaakov Preski, recently dismissed a claim filed by Oren Harel, trustee for the storage company Adanim TRPL, seeking to compel Sitka Import and Marketing to transfer approximately 2.5 million shekels to the liquidation fund. The claim related to a 2018 real estate transaction involving about 57 dunams in Ashdod, sold by Sitka to CalMobil for around 250 million shekels. At the time, Adanim leased the property but entered insolvency proceedings in 2021.
The trustee argued that Adanim’s renovation and improvement work increased the property’s value, entitling the liquidation fund to a portion of the surplus payment Sitka received. Sitka, represented by attorneys Oz Cohen Koren and Tzlil Houdadi from Negbi Cohen & Co., countered that the claim lacked foundation, noting that much of the sale proceeds were used to repay secured debts and liens on the property totaling tens of millions of shekels. Sitka also highlighted its significant legal expenses, including expert opinions costing about 200,000 shekels.
After multiple extensions, the trustee submitted a delayed response, but the court expressed doubts about the claim’s validity, citing lack of precedent, absence of professional appraisals, and unresolved issues regarding inventory and equipment purchases. Judge Preski ruled that the trustee’s arguments did not present a realistic chance of success and ordered the liquidation fund to pay Sitka 10,000 shekels in legal costs. The trustee was also instructed to submit an updated report by September 15, 2026, recommending steps to conclude the case.
Oz Cohen Koren praised the court’s decision as a just outcome for Sitka, emphasizing the trustee’s failure to substantiate the claim despite extensive legal efforts. Meanwhile, Oren Harel stated that the trustee acts under court supervision to protect creditors and is reviewing the ruling to consider further legal action.
