Tel Aviv Court Approves Slice Settlement Plan as Savers Wait for Funds
The Tel Aviv District Court approved Slice's final settlement plan, allowing the distribution of millions to affected savers. However, hurdles remain regarding restricted white funds and loan repayments.
The Tel Aviv District Court approved the final settlement plan for the Slice provident fund company, yet for affected savers, the wait for the return of their funds continues. Judge Sigal Yakobi approved the plan formulated by the appointed manager, Efi Sandrov, paving the way for the distribution of tens of millions of shekels collected so far, alongside approximately 200 million shekels remaining in the transition account.
The Collapse and the Red Funds
The Slice affair erupted in late 2023, after the Capital Market Authority found severe deficiencies in the management of members' funds and appointed Efi Sandrov as the company's licensed manager. On the eve of the collapse, Slice managed approximately 4.2 billion shekels, of which about 2.4 billion shekels were in individual retirement accounts (IRAs). At the heart of the affair are the "red funds" — private investment funds to which thousands of savers' funds were transferred, despite not meeting the conditions for investment via provident funds.
"The final plan resolves the legal framework for asset distribution, but significant challenges remain regarding liquidity and the collection of funds from promoters," noted financial sources familiar with the proceedings.
White Funds and Distribution Priorities
The situation of the "white funds" members also proved more complex than initially estimated. Currently, about 1,800 members remain in these funds, with investments valued at approximately 1.8 billion shekels. More than 700 of them hold investments in funds defined as "restricted white funds," which currently cannot be realized or transferred due to liquidity constraints or legal hurdles.
For funds that can be released, a strict priority order was established:
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Members aged 60 and above
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Members aged 50 and above
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Members aged 40 and above
Efforts also continue to recover funds from entities that raised capital from savers, including recent agreements aiming to retrieve tens of millions of shekels.
