Following debts of over NIS 60 million: Jerusalem contractor seeks temporary receiver

The veteran Jerusalem construction company 'Neta Lifshitz' is requesting the court to appoint a temporary receiver and issue a stay of proceedings for economic rehabilitation, after accumulating debts of over NIS 60 million. The company, operating for about three decades, attributes the crisis to the 'Swords of Iron' war, which caused a shortage of workers, halted sites, and a drop of more than 30% in output, alongside old execution contracts that did not reflect the rise in construction input costs.

The veteran Jerusalem construction company 'Neta Lifshitz', operating for about three decades, has filed a request with the court for the appointment of a temporary receiver and a stay of proceedings for economic rehabilitation, after accumulating debts of over NIS 60 million. The company, registered as a contractor in classification G 5 with an unlimited financial scope, attributes the crisis to the 'Swords of Iron' war, which caused a severe shortage of workers, halted construction sites, and a drop of more than 30% in output. This was accompanied by old execution contracts signed before the war that did not reflect the sharp rise in construction input costs. The request indicates that the company has one active project – 'Ginot HaYovel' in the Kiryat HaYovel neighborhood in Jerusalem, comprising five buildings with 226 housing units, a kindergarten, and commercial space, where the engineering execution rate stands at about 80% and the expected remaining consideration is estimated at about NIS 75 million. The company employs 45 workers, and in 2023 its revenues totaled about NIS 142 million. The debts include a demand for repayment of about NIS 15.4 million to Bank Hapoalim (secured debt), debts to hundreds of suppliers and subcontractors estimated at about NIS 44 million, unpaid employee wages of about NIS 2.4 million, a debt to authorities of hundreds of thousands of shekels, and owner loans of NIS 29.1 million. The company emphasizes that it is choosing the path of economic rehabilitation rather than liquidation, in order to protect home buyers, employees, and subcontractors.