Draft: this English version is pending final review.
Enforcement and assets
Insolvency in Israel where the debt or the assets are in Russia
The bankruptcy runs in Russia and the assets are in Israel, or the reverse: Israeli proceedings on a debt governed by Russian law. I act for creditors, officeholders and debtors with substantial assets.
01Who it is for
Typical clients
- Russian banks and companies opening insolvency proceedings against a debtor in Israel
- Russian officeholders seeking recognition and access to Israeli assets
- Israeli trustees and special managers who need a debt or a status confirmed under Russian law
- Debtors and controlling persons whose Israeli assets are affected by a Russian case
02Typical situations
What we see
Recognition of a Russian proceeding
An application under Part IX of the Insolvency and Economic Rehabilitation Law 5778-2018. A proceeding in the state of the debtor’s centre of main interests is a foreign main proceeding (s. 293).
Limits of the foreign officeholder’s powers
A recognition order does not of itself permit a sale. Realisation requires a separate application under s. 302(c), and the court examines whether Israeli creditors are harmed.
A petition by a Russian creditor
A foreign creditor asks to open Israeli proceedings. The debt and its amount under Russian law are proved by an expert opinion.
The debtor’s home
A residence may be sold only with court approval under s. 229, subject to three cumulative conditions.
Two procedures confused
Recognition of a proceeding and enforcement of a foreign judgment are governed by different statutes. A Russian ruling does not take effect in Israel merely because the proceeding was recognised.
03What we do
Two sides of one case
RU · Moscow
- Representation in the Russian bankruptcy case: creditor claims, the register, positions on the manager’s applications
- Transaction-avoidance disputes, including assets outside Russia
- Defence of controlling persons against subsidiary liability
- Obtaining, legalising and translating the Russian case file for the Israeli court
IL · Israel
- Recognition proceedings under Part IX for the officeholder, a creditor or the debtor
- Objections to discretionary relief under s. 302(b) and to realisation under s. 302(c)
- Position under s. 229 on the sale of a residence
- Review of the applicant’s standing and chains of powers of attorney (s. 301)
- Section 316 grounds: public policy and lack of a fair opportunity to be heard
04The role of Russian law
What the opinion proves
The Israeli court needs to understand Russian law: the status and powers of the financial manager, the stage of the procedure, the validity and amount of the claim, the effect of avoided transactions and the fate of debts once the procedure ends.
All of this is proved by an expert opinion. Without one, the presumption that foreign law is identical to Israeli law applies and arguments about Russian rules remain unproven.
I prepare opinions both for the applicant and as counter-opinions where the other side has already filed one.
06Questions and answers
Will a Russian bankruptcy be recognised in Israel if the debtor lives in Russia?
May a foreign officeholder sell an Israeli apartment straight away?
Does a Russian court ruling take effect in Israel once the proceeding is recognised?
07Request a case assessment
Request a case assessment
A reply within 1–2 business days.
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