Adv. Lior Dagan was appointed as the trustee of EGFE Israel Ltd. (in liquidation), as the trustee for the assets of the debtor Michael David Ben Ari (in insolvency), as the trustee of EGFE Hungary KFT (in liquidation), and as the trustee of EGFE USA LLC (in liquidation) – consolidated insolvency proceedings conducted before the Tel-Aviv District Court. Adv. Dagan was also appointed as the debtor’s trustee (Foreign Representative) in the recognition proceedings according to Chapter 15 of the US bankruptcy code, which is being conducted in the court of the Southern District of New York. On this website, you can keep up to date with what is happening on the case, get information about filing debt claims, which is an action necessary to recognize an investor as a creditor of the debtor and/or EGFE corporations, read decisions and judgments given by the court, review motions submitted to the case by the trustee, contact the trustee and his staff, and more.

On March 23, 2022, the trustee submitted to the court a detailed periodic report of approximately 80 pages, in which the following were detailed:
  • About the insolvency cases of the debtor and EGFE corporations
  • Details of the debtor’s and EGFE corporations’ assets in Israel and abroad.
  • Details about the numerous operations performed by the trustee in Montenegro
  • A summary of the Trustee’s operations in Serbia, Hungary, the USA and other countries.
  • Litigation proceedings in Israel and abroad.
  • Attached to the periodic report is a financial statement of the creditors’ pool, as prepared and reviewed by CPA Jacob Passi (the financial statement is as of the date of submission of the periodic report).

To download the periodic report submitted by the trustee – click here.

December 2022

The court has approved the agreements reached between the Trustee and the State Attorney’s Office (Taxation and Economics) regarding the gradual release of assets and funds for the benefit of the investors (creditors).
Over the past few months, the Trustee, Adv. Dagan, has been working to seize and realize the assets and rights of the debtor and the EGFE corporations in Israel and around the world. At the same time, negotiations have been taking place with the State Attorney’s Office (through Advs. Yehudit Tirosh, Stav Ginat, and Yossi Zadok) for the benefit of the creditors, who are also the victims of the offenses in the criminal proceedings. These negotiations have resulted in a final agreement to release all real estate assets in Israel and abroad, as well as funds in foreign bank accounts, in the first stage. In the second stage, after the approval of the Trustee’s motion to determine the debt claims resolving mechanism (Motion No. 168 in the insolvency case) and the decision of the insolvency court regarding the distribution of dividends to investors, the rest of the liquid holdings, including funds in the bank accounts of Ben Ari and EGFE in Israel, will be released. On December 25, 2022, the court (hon. Judge Tirtsa Keinan Shacham) approved and validated the agreements reached between the Trustee and the State Attorney’s Office. This is a significant step that brings the goal of distributing a first and significant dividend to Ben Ari’s and EGFE’s creditors during the first half of 2023 closer to fruition. The Trustee thanks the State Attorney’s Office and representatives of the Israel Securities Authority for their cooperation and assistance in releasing the assets for the benefit of the investors. Distributing funds to creditors, who are also the victims of Ben Ari’s crimes, as soon as possible is the top priority. The Trustee is also working to seize and realize the funds, rights, and assets of the debtor and EGFE corporations located in Israel and in various countries around the world (in coordination with the authorities) in order to maximize the distributable funds and facilitate a quick and efficient distribution to creditors.

August 2022

On June 29, 2022, the trustee held an update conference for the debtor’s creditors and EGFE corporations held at ZOA in Tel Aviv. An invitation to the conference was sent to all of the debtor’s and EGFE corporations’ investors and to the representing attorneys on the case, along with a link to connect remotely via Zoom. In the first part of the conference, the trustee reviewed in detail all the actions carried out by him and his team on the case, the status of the assets and/or funds of the debtor and EGFE corporations in a geographical division by country, an overview of the debt status; A review of the mechanism proposed by the trustee of resolving debt claims (motion No. 168) including a numerical example for illustration; The interfaces of the insolvency procedure with the criminal procedures conducted in Israel and around the world; and more; In addition, the trustee provided information on the next planned steps, including timetables for the continuation of the actions on the case. In the second part of the conference, the trustee answered all the questions sent in advance, with the trustee answering each question according to the language in which the question was asked (questions asked in Hebrew the trustee answered in Hebrew, and questions asked in English, he answered in English).

 To watch the conference:

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