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The Eldad Perry Affair - Questions and Answers Israel today

2021-10-16T20:39:46.137Z

Hundreds of buyers were shocked when they realized a little over a year ago that Perry Real Estate was unable to meet its obligations to them. • Adv.



A little over a year ago, it became known that Perry Real Estate was unable to meet its obligations. This news shocked hundreds of buyers, who realized that they would not receive the apartment promised to them. Adv. Oded Chen, who specializes in insolvency, explains that the company is a separate legal entity. And details the legal issues that arise from the case.

Will the fact that Perry died make the creditors' situation difficult? 

No.

It has no effect.

This is a limited company, which is a separate legal entity. Of course, his estate can also be sued, by a "screen lifting" procedure. If the owner of the company has performed illegal actions, he can be sued personally even if he dies, through his estate.

Adv. Oded Chen, Photo: PR

Why do we not know so far the exact extent of the debts?

Not all affected buyers have filed debt claims in this case.

It is not at all certain that all creditors will actually file lawsuits, as they probably know that the chances of getting their money back are small and filing a lawsuit involves considerable financial costs.

The large creditors in the buyers and lenders - especially the banks - will also wait many years for the money, because the repayment will be made as part of a complex procedure of collecting the company's assets.

What does the conference process involve?

This is a process of realizing all the company's assets - putting them up for sale.

It requires valuations, legal checks and the like as well as negotiating to clarify the best deals - a process that can take years.

After the company has accumulated the majority of the amount, the process of returning the funds to the creditors will begin.

When will buyers be able to receive their share of the conference money?

The tax authorities are the first to receive their debt - 100% of the money due to them, because they have priority in law.

After them there is priority for the banks, and what is left will be distributed to creditors who have received approval for their debt claims.

It is worth noting that in such cases many give up their debt, or do not claim it within the time allotted to them by law.

As mentioned, the debt claim procedure is not cheap, and since the chances of getting fruit from this procedure are small, some give it up in advance.

Is it possible to file a debt claim independently?

From the moment the company is dissolved, the creditors have six months to submit the application.

Debtors can do this using an online built-in form found on the official receiver website.

After the lawsuit is filed, the plaintiffs are required to be active in the case, file a debt claim and follow up on the hearings, and many do not.

What is the rate of debt that will be repaid in your estimation?

It depends, in the end, on how much money will accumulate in the fund in the sale of assets.

I assume that with this amount of debt, the convention fund will be able to repay about 30% of the debts, or much less.

Eventually, it should be understood that they approached the liquidation of the company because of their liabilities and because the debts were significantly larger than their revenues.

Also, in this case these are many apartments and buildings that have not been built and yet these creditors are last in line.

Those who made trades just before the company was liquidated are in even greater trouble because they have no property at all through which they can recoup some of the money.

They will get the money like everyone else in the cake distribution.

But in the end, there are those who have some property in hand and they will be able to sell the rights to a third party and their return on investment will be higher.

How can customers avoid such situations?

It is very important in every transaction that you make, even if it is in front of a company that looks big and stable, to make sure that there is enough collateral for the money you pay.

There is no shortage of examples of such companies falling apart.

The collateral can be a bank guarantee, or other assets of the company, or a bank loan.

The main thing is to have a real backup for any amount of money paid for the transaction.

Source: israelhayom

All news articles on 2021-10-16

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