Insolvency and Economic Rehabilitation Law, 5778-2018

In this Part —

"court" — as defined in section 4, and if the conditions prescribed in that definition are not met — the District Court or the Magistrate's Court, in Jerusalem, as the case may be;

"foreign office holder" — a person authorised within the framework of a foreign proceeding to conduct the rehabilitation or liquidation proceedings of the debtor, including a person appointed as aforesaid on a temporary basis, and also a person authorised within the framework of the foreign proceeding to exercise the powers vested in a foreign office holder under this Part;

"recognition", in respect of a foreign proceeding — recognition of the foreign proceeding by the court under the provisions of Chapter III: Recognition of a Foreign Proceeding;

"foreign proceeding" — a judicial or administrative proceeding conducted in a foreign state, under a law relating to insolvency, within the framework of which the relations of the debtor with its creditors are regulated, including on a temporary basis, collectively, and the assets and affairs of the debtor are subject to the responsibility or supervision of a foreign competent authority, for the purpose of the economic rehabilitation of the debtor or the debtor's liquidation;

"secondary foreign proceeding" — a foreign proceeding that is not a main foreign proceeding, conducted in a foreign state in which the debtor carries on economic activity involving trade in goods or the provision of services, entailing the employment of personnel, that is not temporary;

"main foreign proceeding" — a foreign proceeding conducted in a foreign state in which the centre of the debtor's interests is located; for this purpose, the place of registration of a debtor that is a corporation or the place of residence of a debtor that is an individual shall be regarded as the place in which the centre of that person's interests is located, unless the contrary is proved;

"foreign state" — including a territory outside Israel that is not a state, listed in the Third Schedule;

"foreign creditor" — a creditor from a foreign state;

"competent authority in Israel" — the court or the Official Receiver, and for the purposes of insolvency proceedings in respect of an individual with debts in a low amount — also the Execution Registrar;

"foreign competent authority" — a judicial authority or any other authority empowered to supervise a foreign proceeding or responsible for its conduct.

The provisions of this Part shall apply in each of the following:

A foreign office holder may approach the competent authority in Israel directly.

An approach by a foreign office holder under this Part to a competent authority in Israel does not in itself confer jurisdiction on the competent authority in respect of the foreign office holder or in respect of the assets or business of the debtor, except for the purpose for which the approach was made.

Where the court has recognised a secondary foreign proceeding, it may, on the application of the foreign office holder, grant any relief as referred to in section 302, if it is satisfied that the relief is required in respect of an asset that should properly be administered within the framework of the secondary foreign proceeding or in respect of information required for that proceeding, and that the relief is required for the protection of creditors or the preservation of the value of the debtor's assets.

Where the court has recognised a foreign proceeding under this Chapter, the foreign office holder may be a party to any proceeding to which the debtor is a party and which may affect the foreign proceeding, except for proceedings under section 31.

A foreign office holder shall notify the court, as soon as possible, of any material change that has occurred in the foreign proceeding since the date of filing of the recognition application, including a change relating to the foreign office holder's appointment, and also of the conduct of an additional foreign proceeding concerning the debtor that has come to the foreign office holder's knowledge.

For the purpose of promoting co-operation as referred to in sections 308 and 309, the competent authority in Israel may, inter alia –

Where the court has recognised a main foreign proceeding, the following restrictions shall apply in respect of insolvency proceedings concerning the debtor in respect of whom the main foreign proceeding is being conducted:

Where the court has recognised a main foreign proceeding, the debtor is presumed to be in insolvency for the purpose of the conditions for filing an application for an order opening proceedings under sections 9 or 109; the presumption of insolvency referred to may be rebutted.

Where proceedings under this Part have been conducted in respect of several foreign proceedings concerning the same debtor, the following provisions shall apply: