Lawsuit: Loan of NIS 11.6 million ballooned to debt demand of nearly NIS 60 million within 5 years

Real estate developer Yehoram Ben Shalom and his company Bshuva Yavad filed a lawsuit against the credit company A.R.A.B Bonus, claiming that an initial loan of NIS 11.6 million ballooned to a debt demand of nearly NIS 60 million within about five and a half years. The plaintiffs are asking the court to allow them to repay the debt according to a previous settlement agreement.

Real estate developer Yehoram Ben Shalom and his company Bshuva Yavad filed a lawsuit against the non-bank credit company A.R.A.B Bonus, claiming that an initial loan of NIS 11.6 million ballooned to a debt demand of nearly NIS 60 million within about five and a half years. The lawsuit was filed in the Tel Aviv District Court two weeks ago. The affair began in December 2019, when Bonus granted Ben Shalom a loan with a nominal value of NIS 8.5 million, which after three increases reached a nominal NIS 14.25 million, but in practice NIS 11.6 million was provided after deducting interest in advance. The loans were secured by a lien on real estate properties in Hadera, Migdal, and Shaked-Hinanit. In December 2024, a settlement agreement was signed that received the force of a court ruling, under which Bonus agreed to settle the debt for NIS 24.8 million plus annual interest of 14.5% and VAT. The agreement included a breach condition allowing Bonus to revert to the "full debt amount." In March 2025, Ben Shalom announced he had secured financing for repayment and requested a 30-day letter of intent, but Bonus provided a letter valid for only one day. Subsequently, the company renewed enforcement proceedings, and according to a calculation it submitted, the debt stood at NIS 59.9 million in June. The plaintiffs claim that four enforcement cases yielded no collection, while the debt grew by 3% per month. Bonus responded that the claims are denied and that the borrower has not met his obligations for over six years.