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"The Inbal Or affair pales in comparison to the extent of Rom Kinneret's deception" - Walla! Real Estate

2023-08-23T09:57:46.111Z

Highlights: The District Court appointed temporary trustees for the veteran real estate company, Rom Kinneret. The company has accumulated debts of NIS 137 million, a large part of them to home buyers, who may be left penniless. In her decision, Judge Noa Grossman ruled that "there are prima facie grounds for initiating proceedings due to cash flow insolvency" The judge issued a non-disposition order, prohibiting transactions in the company's assets, in addition to a Non-Disposition order on the assets of controlling shareholder Sasson Personally.


The District Court appointed temporary trustees for the veteran real estate company, Rom Kinneret, which has accumulated debts of NIS 137 million, a large part of them to home buyers, who may be left penniless


Inbal Or's discussion, Shalom, Tel Aviv, November 10, 2019 (Photo: Walla!, Boaz Efrat)

The Rom Kinneret case continues to get complicated: The Tel Aviv District Court today (Wednesday) appointed attorneys Ehud Gindes and Shai Milo as temporary trustees for the Rom Kinneret real estate company.

In her decision, Judge Noa Grossman ruled that "there are prima facie grounds for initiating proceedings due to cash flow insolvency. There is an urgent need to appoint an official." In addition, the judge noted that "the picture painted by the various creditors is blacker than black in relation to the conduct of the company and controlling shareholder Sasson... These are ordinary citizens who gave their best money, savings on which they worked all their lives in order to buy themselves an apartment in the company's projects, and they may, it is claimed, now find themselves destitute."

In addition, the judge issued a non-disposition order, prohibiting transactions in the company's assets, in addition to a non-disposition order on the assets of controlling shareholder Sasson Personally, who is currently in Dubai, claiming that he is looking for investors.

Adv. Adi Braunstein, counsel for Rom Kinneret's controlling shareholder, said in response to the decision: "The controlling shareholder intends to cooperate with the trustees in order for the company to formulate an arrangement with all its creditors."

The District Court appointed temporary trustees for the Rom Kinneret real estate company (Photo: ShutterStock)

The judge's decision was made after a court hearing was held yesterday (22.8) after various requests were filed regarding the company, including an application filed by the company itself, in which it claimed that its debts amount to NIS 137 million. On the other hand, the creditors argued that the company painted too rosy a picture.

Justice Noa Grossman noted in her decision that "the picture obtained is that, on the face of things, the company is in a problematic situation that justifies clarification and monitoring by a professional entity that will examine one by one the company's various obligations to the buyers, check whether there are no duplicates in the sale of the apartments, assess its financial situation and its possibilities of completing the projects, if any, as well as its obligations towards the various creditors, whether financial entities. Whether employees or local authorities."

In addition, the judge rejected the request submitted by Rom Kinneret to reach an arrangement with its creditors under Amendment 4, under which a trustee is not appointed to take over the management of the company. "Spouting slogans as if the controlling shareholder's trip to Dubai was intended to obtain financing, without providing real data regarding the scope of that financing and the identity of the investor will not be able to stand at this time," she stated.

During the hearing, attorney Adi Braunstein, counsel for Kinneret Rom, said, "Ilan Sasson has dedicated his life and also invested seven million shekels recently in this company. I think Ilan Sasson will be right and will help a court appointee. There are claims that fraud are made. Everyone throws things in the air."

The judge scheduled another hearing for September 19.

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"There is not a moment in the last few days that we will not discover another failure and another deception."

Following the District Court's decision to appoint temporary trustees for the Rom Kinneret real estate company, Attorney Itai Anshel, who represents the Group's buyers together with Adv. Shelly Nahum, said: "There is not a moment in the past few days that we will not discover another omission and another deception, until it seems that the Inbal Or affair pales in comparison to the scope of the alleged fraud of the Rom Kinneret Group. The court fully understood the alleged catastrophe and accepted our request for a blanket disposition ban on all of the company's assets. We have been working since this morning with the trustees appointed to carry out immediate actions to save the money and apartments of all our rights acquiring customers."

"In court, we presented step by step the work of thought that was done in order to allegedly defraud the investors, employees and authorities, while the trust funds were transferred to non-bank financing companies and the owner is in a country with which there is no extradition agreement,"

the court was shocked to hear the findings presented by us in all the alleged deceitful moves of the company and its owners, and rejected out of hand the company's attempt to postpone the end, freeze proceedings and continue operating. In light of the foundation we laid for the seemingly incomprehensible fraudulent acts, home sales were double the lien on the buyers' land to nonbank credit companies without the buyers' knowledge and in grave contravention of the provisions of the law and the company's obligations and declarations in agreements signed with them."

  • Real Estate

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Source: walla

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