Debt of 1.27 million shekels for property tax and sewage: MastiX on the verge of insolvency

The Jerusalem District Court ordered the opening of insolvency proceedings against M. Mastix Ltd., owner of the MastiX brand, due to a debt of approximately 1.27 million shekels in property tax and sewage fees owed to the Mateh Yehuda Regional Council. The council claimed the debt accumulated for properties in Har Tov and Even Sapir, and a previous payment arrangement was breached. Judge Avigdor Dorot accepted the council's position and rejected the company's objections.

The Jerusalem District Court ordered the opening of insolvency proceedings against M. Mastix Ltd., owner of the MastiX brand, following a debt of approximately 1.27 million shekels in property tax and sewage fees to the Mateh Yehuda Regional Council. The council, represented by attorney Gil Efrati, argued that the debt accumulated for properties held by the company in the Har Tov industrial zone and Moshav Even Sapir. Over the years, payment demands were sent, liens were imposed, and a debt settlement was signed in December 2019, under which the company was to pay 334,155 shekels in 24 monthly checks, but the checks were canceled and dishonored. The company opposed the proceedings, claiming the debt was disputed, partially time-barred, and that the council was attempting to use insolvency proceedings instead of a civil lawsuit. Judge Avigdor Dorot accepted the council's arguments, rejected the company's position, and ruled that the debt settlement indicated an unpaid debt. The decision emphasizes that property tax debts are public funds and a local authority is entitled to use legal tools to protect the public treasury.