Buyers Petition for Insolvency Against Herzliya Developer Bney Ir Bisrael
Three apartment buyers petitioned the Tel Aviv District Court to initiate insolvency proceedings against real estate developer Bney Ir Bisrael over an unpaid 340,000 shekel judgment.
Three apartment buyers have petitioned the Tel Aviv District Court to initiate insolvency proceedings against the real estate company Bney Ir Bisrael and its parent company, M.N. Atid 2012.
The petitioners, who purchased apartments in an urban renewal project at 14 Malki Yisrael Street in Herzliya, are seeking a court order to open insolvency proceedings and appoint a trustee for the companies. According to the filing, the buyers secured a judgment awarding them 340,000 shekels against the developers, but allege the debt remains entirely unpaid despite formal demands and the expiration of the statutory payment deadline.
Parking Space Dispute and Court Rulings
The legal dispute stems from severe delivery delays and substantial defects concerning automated parking facilities at the Herzliya project. In June of this year, the Tel Aviv Magistrates Court ruled that the provided parking systems offered extremely limited usability, failing to comply with building permit requirements and contractual obligations.
Judge Maya Roizman-Aldor determined that while the lifts could accommodate very small vehicles, they were completely unsuitable for standard family cars and SUVs. Consequently, the court awarded compensation for diminished property value: 160,000 shekels to a couple, and 96,000 shekels to another buyer, alongside 45,000 shekels in legal costs and interest.
Corporate Veil Piercing
The court previously established that an improper commingling of assets existed between Bney Ir Bisrael and M.N. Atid 2012, justifying the piercing of the corporate veil to treat them as a single economic entity controlled by attorney Moshe Nachum. The request to hold Nachum personally liable was dismissed, and representatives for Bney Ir Bisrael have not yet provided a response.
