Jerusalem Builder Neta Lipshitz Seeks Financial Restructuring Over 60M Debt
Veteran Jerusalem construction firm Neta Lipshitz has filed for financial restructuring and a temporary trustee amid debts exceeding 60 million shekels, citing severe fallout from the Iron Swords war.
The veteran Jerusalem-based construction company Neta Lipshitz has filed for a temporary trustee appointment and an insolvency proceeding for financial restructuring after accumulating debts of tens of millions of shekels. Represented by attorneys Shelly Nahum and Ilan Gelman, the company requested a temporary trustee to ensure proper operations, asset management, and safeguarding. Court filings indicate that the firm has hundreds of suppliers and subcontractors, with debts to them estimated at approximately 44 million shekels. Total liabilities are assessed at over 60 million shekels, excluding a 29 million shekel shareholder debt.
Operating for nearly three decades, the company specializes in residential and public construction in Jerusalem and its surroundings, holding an unlimited classification contractor license. Until the outbreak of the Iron Swords war, the firm was profitable and stable, recording revenues of approximately 142 million shekels in 2023. Its primary active project is Givot HaYovel in the Kiryat HaYovel neighborhood of Jerusalem, featuring five buildings with 226 housing units, a kindergarten, and commercial spaces. Engineering completion stands at roughly 80%, with expected remaining revenues estimated at 75 million shekels.
Impact of the War and Financial Strain
The company attributes its severe crisis to the Iron Swords war, which triggered an acute labor shortage, site shutdowns, and a productivity drop exceeding 30%. This was compounded by legacy execution contracts signed before the war that failed to reflect surging construction input costs. Obligations include 15.4 million shekels to Bank Hapoalim, 44 million shekels to suppliers and subcontractors, 2.4 million shekels in unpaid wages and employee rights, tax debts, and 29.1 million shekels in shareholder loans.
"The restricted bank account prevents the company from paying salaries and subcontractors, and stopping work will lead to site abandonment, expulsion from the project, and the loss of remaining revenues," stated the company in its legal filing.
Path to Economic Rehabilitation
Emphasizing that it remains a going concern, Neta Lipshitz argues that supervised operations will yield a higher return for creditors than liquidation. It will also prevent the forfeiture of approximately 27.6 million shekels in Sale Law guarantees, protect apartment buyers, and preserve jobs for its 45 employees. The company is owned by Natan Neta Lipshitz (75%) and Yaakov Yosef Lipshitz (25%).
