Supreme Court Upholds Bankruptcy Payment Order for Former Developer Oren Kobi

The Supreme Court dismissed an appeal by former real estate entrepreneur Oren Kobi, upholding a monthly payment order of 30,000 shekels in his bankruptcy proceedings. Creditor claims against Kobi total 34 million shekels, alongside 239 million shekels in debts tied to companies he previously controlled. According to the District Court, Kobi has failed to contribute a single shekel to the bankruptcy fund over the past six and a half years while maintaining a lavish lifestyle at the expense of his creditors.

Criminal Charges and Restrictions

Kobi currently faces four active indictments. The central case, pending for six years in the Tel Aviv District Court, includes severe charges of aggravated fraud by false pretenses, theft by a power of attorney, and offenses related to his land-sales venture Adama Group. In 2025, an additional indictment was filed against him for violating a court order prohibiting involvement in real estate, creditor fraud, and other offenses. He was released to electronic house arrest and remains under a strict prohibition against engaging in any real estate business.

Supreme Court Ruling

Declared bankrupt about a year ago, Kobi argued in his appeal that his earning capacity is zero due to house arrest and employment bans. He also claimed the District Court ignored evidence regarding his lifestyle, noting his mother pays his rent. Justice Alex Stein ruled that Kobi's failure to deposit funds or provide timely financial evidence raised heavy suspicions. The temporary payment order stands, pending full financial disclosures.

"This is a debtor who throughout the proceedings has acted in bad faith, maintaining an extravagant lifestyle while hiding assets from creditors, the trustee, and the court," the District Court noted.

The trustee was represented by attorneys Hagi Ullman and Vlad Zabluda, while Kobi was represented by Chen Agbali and Itay Eylenberg.