The economic lockdown due to the corona crisis has hit many businesses in the Israeli economy very hard, and they are struggling to meet their commercial obligations and continue operations.

The fact that many businesses are encountering cash flow difficulties, are subject to collection proceedings, are exposed to cancellation of contracts and orders, and are having trouble supplying services and commodities, has led many businesses to “reevaluate their course” and examine alternatives to exit the crisis.

Therefore, right now it is important to understand that insolvency proceedings, which are perceived by many as dramatic proceedings leading to the dismantling of the company or cessation of business operations, can actually serve as the way out of this crisis. The new Insolvency and Economic Rehabilitation Law, which entered into force in September 2019, promotes a policy for economic rehabilitation of these types of businesses.

For a complete update on the matter (in Hebrew) by partners Ehud (Udi) Arzi and Ran Feldman, attorneys Dorit Hamberg and Noa Lavian, and intern Eden Weiss, click here>>>>