Jerusalem Construction Firm Neta Lipshitz Files for Economic Rehabilitation
Jerusalem-based construction firm Neta Lipshitz has filed for economic rehabilitation and a temporary trustee after accumulating over 60 million NIS in debts, citing severe impacts from the Iron Swords war.
The longstanding Jerusalem-based construction company Neta Lipshitz has applied for a temporary trustee and a debt-relief procedure to achieve economic rehabilitation after accumulating liabilities totaling tens of millions of shekels. Represented by attorneys Shelly Nahum and Ilan Gelman, the firm requested the appointment of a temporary trustee to ensure its proper operation, management, and the preservation of its assets.
According to the court filing, the company has hundreds of suppliers and subcontractors, with debts owed to them estimated at approximately 44 million NIS. Overall, the company's total debts are estimated at over 60 million NIS, excluding a shareholder loan of approximately 29 million NIS. Operating for about three decades, the company specializes in residential construction initiation and execution, primarily in Jerusalem, and is registered as a contractor under classification G-5 with an unlimited financial scope.
Impact of the War and Financial Strain
The company states that until the outbreak of the Iron Swords war, it was profitable and stable, with revenues reaching approximately 142 million NIS in 2023. Founded in 1997, the company currently has one active project: the "Ginot HaYovel" project in Jerusalem's Kiryat HaYovel neighborhood, where engineering execution stands at approximately 80%, with expected remaining revenues valued at roughly 75 million NIS. This project comprises five buildings with 226 residential units, a kindergarten, and commercial space.
"The restricted bank account prevents the company from paying salaries and subcontractors, and halting operations will lead to site abandonment, expulsion from the project, and the loss of remaining revenues, which are the core asset of the creditors' pool," the company stated.
Request for Economic Rehabilitation
The company's liabilities include a demand for repayment of approximately 15.4 million NIS by Bank Hapoalim (secured debt), debts to hundreds of suppliers and subcontractors of about 44 million NIS, unpaid wages and employee rights totaling roughly 2.4 million NIS, tax debts to authorities amounting to hundreds of thousands of shekels, and shareholder loans totaling 29.1 million NIS.
Concluding its filing, the company emphasized that it remains a going concern with an active project nearing completion, a professional team, and decades of reputation. Attorney Shelly Nahum stated that the company chose to file for economic rehabilitation rather than liquidation to protect apartment buyers, employees, and subcontractors.
