Nochi Dankner declared insolvent as banks seek new debt settlement talks

Tel Aviv Magistrate’s Court on Wednesday issued an insolvency order against former IDB controlling shareholder Nochi Dankner, after the banks that lent to him asked to open proceedings and Dankner withdrew his objection during the hearing. Judge Nurit Tabib-Mizrahi granted the banks’ request and said both sides may approach the Insolvency Commissioner at the Justice Ministry about timing the appointment of a trustee over Dankner’s assets.

The banks, Leumi, Hapoalim, Mizrahi Tefahot and Discount, filed the petition in April, saying Dankner had failed to meet an updated settlement reached in December 2025. They said he had been given repeated extensions since the original 2016 debt arrangement, including in July 2017, June 2019, August 2020 and July 2023, but continued to miss obligations. In court they argued that insolvency was now the only way to protect creditors and maximize repayment.

Dankner’s lawyer, Shalom Goldblatt, said his client would not oppose the order, but asked that the trustee not start work immediately so the sides could continue talks for 30 days. Bank of Leumi’s lawyer, Ronen Matri, did not object. The court said the parties may ask the commissioner to delay the trustee’s appointment date.

Dankner said he has been in insolvency for more than 10 years and has already done everything possible, including selling his home, using money from family and friends, and pledging rights in his father’s estate. He said he had repaid about 110 million shekels and had also mortgaged his rights in the estate, whose main asset is the Jerusalem property Beit Hanehen. In a statement before the hearing he said, “I have worked tirelessly and did my best for about ten years to repay my debts,” adding that he had given up everything he had. He also said he is writing an autobiography in which he may discuss his mistakes.

According to the banks, Dankner’s original debt was about 510 million shekels, of which he was supposed to repay 180 million under the old settlement. The updated deal required an immediate payment of 5 million shekels and a pledge of all rights in his father’s will, with an external supervisor for the sale of Beit Hanehen, which the banks valued at 90 million to 150 million shekels. The banks said he paid only about 2.5 million shekels under that deal before defaulting, and they are now expected to renew settlement talks after the insolvency order.