Are the bondholders creditors of the pyramid companies?

In 2022, the local capital market was rocked by the collapse of two nonbank credit companies: Yount Credit and Backup Holdings due to suspicions of embezzlement and irregularities.

The collapse of a backup holding group, which operated in the format of a cluster of companies headed by a public company, brought before the Tel Aviv Economic Court a unique request on behalf of the creditors of the public company to initiate consolidated insolvency proceedings along the chain of companies in the backup group.

The Head of our Corporate and Capital Markets Department, Adv. Ofer Yankovich, gave his opinion on the matter to The Marker magazine.

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