Bankrupt Israeli Entrepreneur Oren Kobi Seeks Re-examination of 30,000 NIS Payment Order
Bankrupt real estate entrepreneur Oren Kobi has asked the Tel Aviv District Court to reassess a 30,000 NIS monthly payment order, citing zero earning capacity due to house arrest and business bans.
Real estate entrepreneur Oren Kobi, who previously operated through the collapsed Adama land marketing group, has asked the Tel Aviv District Court to re-examine the temporary payment order requiring him to transfer 30,000 NIS per month to the bankruptcy estate. Kobi, who was declared bankrupt in August 2025, argues that he is unable to make the payment and that his earning capacity is currently completely zero, partly due to his house arrest and a judicial order prohibiting him from engaging in any real estate business activity.
His request was filed after the Supreme Court recently rejected his motion for leave to appeal the payment order itself, noting, however, that its amount could be re-examined after full data on his financial situation is submitted. Bankruptcy proceedings against Kobi have been underway in the Tel Aviv District Court since 2016. Within these proceedings, over 123 debt claims totaling approximately 34 million NIS have been filed against him, in addition to the debts of companies under his control, whose debt claims amount to approximately 239 million NIS.
Legal Proceedings and Financial History
During the bankruptcy proceedings, two creditor arrangements were submitted and approved by the court regarding Kobi, but they ultimately failed to materialize. Alongside the bankruptcy proceedings, several criminal cases have been conducted against him, including a pending 2025 indictment charging him with creditor fraud, false registration in corporate documents, obtaining property by fraud under aggravating circumstances, and more.
Under the criminal proceedings, Kobi was released to house arrest under electronic monitoring, and a judicial order remains in place prohibiting him from engaging in any real estate business activity. There is still no ruling in the criminal sphere, and Kobi enjoys the presumption of innocence. In February 2026, the trustee, Adv. Hagai Ullman, petitioned for a monthly payment order of 30,000 NIS, based on an estimate of Kobi's financial capacity, claiming he leads an extravagant lifestyle and receives assistance from associates.
"I acted with utmost diligence in accordance with the Supreme Court's directive and provided the trustee with all missing reports, which constitute full evidentiary backing of my financial situation," Kobi stated.
Kobi opposed the motion, arguing that his earning capacity is zero due to his house arrest and business ban, and that he lives in an apartment rented by his mother using her own funds. In its early July ruling, the District Court granted the trustee's request and imposed a temporary monthly payment order of 30,000 NIS on Kobi.
Appeals and Ongoing Negotiations
Kobi subsequently filed for leave to appeal to the Supreme Court, arguing that the District Court erred in imposing the order while his earning capacity is nonexistent due to house arrest. About a week ago, the Supreme Court rejected the appeal, but ruled that a re-examination of the payment order should not be blocked moving forward, relying on real data rather than estimates once full financial reports are submitted.
Represented by Adv. Chen Agbali, Kobi recently approached the District Court, arguing that the trustee refuses to examine the new evidence, fails to summon him for questioning, and leaves him under an impossible payment order. Kobi emphasized that maintaining a 30,000 NIS monthly payment order against someone under electronic monitoring who has fulfilled all reporting obligations is unreasonable and constitutes actual punishment.
In a response provided by Kobi, he noted: "The time has come for the public to hear my side as well. Under the creditor arrangement, I took upon myself liabilities totaling approximately 33 million NIS, including company debts, while my personal debts stood at about 5 million NIS. Even today, despite everything that has happened, we are conducting negotiations to return to the creditor arrangement."
