After many dramas and twists, this morning Tel Aviv District Court judge Eitan Orenstein sent Inbal Or's company Or City Real Estate into liquidation. Reading his decision, Orenstein said there was "no hope of rehabilitating the company." He ordered the appointment as liquidator to all the companies in the group the person who has been serving as trustee in the past several days, Adv. Eitan Erez. Erez will be made provisional receiver of Inbal Or's personal assets. Or will attend for questioning by Erez on a date to be set.
"Up to now I have refrained from putting the company into liquidation, as the inclination of the court is to enable a company to recover. I have however become convinced that there is no reasonable chance of rehabilitating the company," the judge said. He mentioned among other things the revelations of the mixing of property buyers' money one with another's, and the withdrawal of cash for Inbal Or's private needs. "The companies were run by the pyramid method," Orenstein said, citing the returned checks and Or's failure to meet payments to a stay of proceedings fund.
"The damage as a result of liquidation will not be greater that the damage from a stay of proceedings," Orenstein said. He added that the companies in the group were accumulating debts and interest. "The set of figures presented to me indicates insolvency. The companies have debts in the hundreds of millions of shekels, and there are doubts about the reliability of the financial statements that have been presented. My conclusion therefore is that there are grounds for giving an order to liquidate the companies," he said.
Listening to the judge's decision, Or sat with clasped arms and bowed head. The judge further said, "From the documents that I have seen, it appears that assets belonging to Or were registered in the names of other people." (Among others, Or's sister-in-law and her minor daughters - G.M.)
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2016
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