Insolvency, Receivership & Dissolution

Insolvency, Receivership & Dissolution

The Insolvency, Receivership and Dissolution Department of Eitan, Mehulal & Sadot provides specialized and comprehensive advice in all aspects of distressed companies, receivership and dissolution, stay-of-proceedings, compositions with creditors, representation of creditors, acquisition of insolvent companies and related transactions. The department's unique and professional practice is based on the vast and extensive experience and knowledge of our attorneys, working together with other departments in the firm.
 

Our many clients include most of Israel's commercial banks, local branches of foreign banks, the Israel Tax Authority, private and public companies, venture capital funds and bondholders.
 

The department’s team has many years of experience as trustees in stay-of-proceedings, as receivers of companies and properties, and as liquidators and special managers of companies in various industries.
 

Handling and management of insolvent companies
 

The department specializes in the handling and management of insolvent companies, and mainly:

  • Operation as a 'going concern' of companies in various market segments, as receiver or liquidator – performing a comprehensive review of the company's business and business environment, and managing the company's legal and operating risks while operating the business as a 'going concern' in order to maximize asset value. In this context we handle affiliated companies, public companies, large manufacturing companies and other entities, where disposition of the entity or its assets are performed concurrently with operation as a ‘going concern’.
     
  • Specialty in the management and dissolution of multi-national corporations – managing companies both in Israel and overseas, including as a 'going concern', and shutting down operations where necessary. This practice is unique to Eitan, Mehulal & Sadot, and relies on the firm’s extensive ties around the world, and our ability to utilize complex legal and managerial tools also outside of Israel.
     
  • Specialty in real estate disposition in Israel and worldwide – maximizing the business potential of insolvent real estate companies and properties. In this context, the department handled companies and real properties in the U.S., the U.K., Germany, Russia, China, Eastern Europe, the Virgin Islands, Malta and elsewhere.
     
  • Specialty in insolvent start-ups and technology companies – handling start-ups and technology companies, from quiet shutdown, without the need for insolvency proceedings, to dissolution of the company and disposition of its assets. This practice brings into play the advantage and distinctiveness of our interdisciplinary capabilities regarding intellectual property and tax aspects, as well as in finding buyers from relevant industries. The firm has years-long experience and specialty in working vis-à-vis incubators and the Chief Scientist with respect to the sale of technologies and intellectual property in and outside of Israel.
     
  • Specialty in sale to foreigners – Eitan, Mehulal & Sadot has knowledge and experience in selling to foreign clients, while overcoming the challenges involved in cross-border sales in the context of insolvency proceedings. These advantages enable the department’s attorneys to expand the circle of potential buyers for the properties handled by them, thus maximizing their value.
     
  • Unique tax solutions for all aspects of insolvency proceedings - including taxation of companies/ individuals/ real estate/ technology/ indirect taxation and VAT.
     
  • Representation of bondholders and companies active in the capital market in insolvency proceedings and appointment as liquidator, receiver or special manager in or incidentally to arrangement proceedings – while working closely with trustees for bondholders and addressing the rights of banks with respect to the company's assets.
     
  • Structuring and overseeing the enforcement of debt arrangements – the department team’s unique combination of excellent legal and managerial skills, enables the department to achieve complex debt arrangements and oversee their enforcement over years, with involvement, where necessary, in the management of the company and supervision over its financial statements.
     
  • Representation of buyers of and investors in insolvent companies – advising buyers and investors on all aspects of investment and acquisition, from the stages of strategy and due diligence, to the approval of the sale through the relevant proceeding and consummation of the transaction.

Examples for the department’s activity:

  • Sale of the assets of Transtech Control Ltd. (in dissolution), in the airport runway lighting market, to Cooper Crouse-Hinds for approx. $5 million, while handling the completion of the construction of an airport in China incidentally to the sale.
     
  • Sale of a hotel, carpark and residential tower in New York State.
     
  • Sale of real estate on Eilat St. and in Kiriat Atidim in Tel Aviv, Israel.
     
  • Sale of an oil company in Russia for millions of dollars.
     
  • Sale of assets in the field of traffic control on airport runways to IAI, in Israel.
     
  • Sale of the shares of Hydrocom, the corporation in charge of water control in the State of Israel, to Contel Automation & Control Ltd.
     
  • Representation of Weiser group in the acquisition of “Hatehof”, under stay-of-proceedings.
     
  • Acquisition of Q-Core Medical (in dissolution) by Boaz and Tally Eitan.
     
  • Acquisition of a software company by the publicly-traded Top Ramdor.
     
  • Sale of the apparel chain Organza and the company's real estate (in cooperation with a receiver on behalf of Discount Bank).
     
  • Sale of Bio-Oz Technologies to an Israeli company under Israeli and foreign ownership.

The Department’s Partner:

 Karen Reichbach-Segal