Israeli Developer Faces Receivership as Debts Near Half a Billion Shekels
Israeli real estate developer A.S. Yigal Yazamot faces receivership as Bank Leumi and Mercantile Discount Bank seek to recover nearly half a billion shekels in unpaid debts.
The real estate market in Israel has been hit by a severe financial crisis as Bank Leumi and Mercantile Discount Bank moved to receivership for real estate developer A.S. Yigal Yazamot. The total unpaid debt of the company, led by Shlomo Avitan and Raanan Halili, has approached nearly half a billion shekels.
Receivership Proceedings and Mounting Debts
Mercantile Discount Bank initially filed a receivership request for two plots in Beersheba meant for 654 apartments in neighborhoods D and Ramot, after the company failed to repay credit estimated at 180 million shekels. Now, Bank Leumi has joined the legal action, stating that the company failed to repay debts amounting to 290 million shekels.
The District Court in Tel Aviv approved the request for the enforcement of liens and the appointment of a receiver for the company, following a total default nearing 500 million shekels.
Projects Impacted Across the Country
The financial collapse affects several high-profile projects:
-
Bat Yam: A massive 43-story tower with a debt standing at 277 million shekels, where several apartments have already been sold with sales guarantees.
-
Beit Shemesh: A completed project with a remaining debt of 13 million shekels, where almost all apartments except five have been sold.
-
Beersheba: Land plots intended for hundreds of residential units facing complications with the Israel Land Authority.
Bank Leumi noted in its filing that the company failed to meet regular payments, interest installments, and equity requirements, exacerbated by an internal shareholder dispute.
