Court hears Hapoalim request for receiver in Heftsiba case

Buyers plan to start legal proceedings against construction company whose debts are in region of NIS 1.2 billion.

August 5, 2007 10:39
1 minute read.
Court hears Hapoalim request for receiver in Heftsiba case

Heftsiba 224.88. (photo credit: Ariel Jerozolimski [file])

The Jerusalem District Court on Sunday evening heard a request filed by Bank Hapoalim, one of the major holders of Heftsiba's assets, to appoint a receiver for the construction company. The bank hopes to allow construction of the company's housing projects to continue, keeping buyers from losing their investments. Meanwhile, disgruntled buyers were planning to start legal proceedings against the construction company, whose debts were reported by Channel Two to be NIS 1.2 billion. Heftsiba had been in the process of constructing some 4,000 apartments when rumors of its impending bankruptcy sparked a surge of panic on Thursday. While there had been rumors for weeks that the company was in trouble, concerns rose to fever pitch when it was learned that the company Electra Real Estate had pulled out of two business deals that would have given Electra a 90 percent stake in Heftsiba. Last week's news sent tremors through the construction industry and prompted many buyers to drop everything and squat in still-unfinished homes. A spokeswoman for Heftsiba said she had no response regarding the company's financial state or to reports that hundreds if not thousands of people, fearful of losing their property, had broken into homes. Rebecca Anna Stoil and Tovah Lazaroff contributed to this report.

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