The debt settlement with the banks, agreed three months ago by former IDB Group controlling shareholder Nochi Dankner, has collapsed. Consequently the banks filed a request today with the Tel Aviv Magistrate's Court to declare Dankner bankrupt. Dankner recently failed to make a payment to the banks as part of the new debt settlement.

Dankner reportedly failed to make the payment because an expected investment in his foodtech company Hoshen, did not materialize, leaving him without the funds that were supposed to finance the continued payments to the banks.

Last January Dankner revised a debt settlement he had reached in 2016 with Bank Leumi, Bank Hapoalim, Israel Discount Bank, Mizrahi Tefahot Bank, Credit Suisse and Union Bank. According to the new arrangement, Dankner pledged to pay the banks NIS 5 million immediately, pledge all his rights in the will of his late father Yitzhak Dankner, and grant the banks the right to appoint an external supervisor to accompany the sale of the central asset in the will - the Beit Hashinhav in Jerusalem. According to the banks' estimate, the value of Dankner's rights in the property ranges from NIS 90-150 million. However, Dankner was unable to meet his debts beyond an initial payment of NIS 2.5 million.

Originally, Dankner owed the banks more than NIS 500 million for loans previously granted to the two private companies through which he controlled IDB. To date, Dankner has repaid about NIS 110 million out of NIS 180 million he had pledged to repay as part of the debt settlement. The funds that Dankner has repaid to date include interest of NIS 20 million, which he paid on the total of the settlement, as well as the final payment of NIS 5 million. As a result, Dankner has NIS 90 million more to repay as part of the settlement.

"He repeatedly violated his obligations"

The request submitted to the court by the banks says that Dankner has been given "Many opportunities to repay his debts to the banks, but time and time again he violated his obligations, while requesting deferrals of the debt settlement signed."

The banks add, "Now, since all options with the debtor have been exhausted, and it does not appear that he is able to meet his obligations, it appears that the only way that will best protect the interests of his creditors and other stakeholders is to initiate insolvency proceedings against the debtor."

The banks' request describes how, since the original debt settlement was signed in 2016, they have granted him four deferrals of payments: in July 2017, June 2019, August 2020, and July 2023.

The banks are therefore asking the court to appoint a trustee for Dankner's assets, explaining that this "Will benefit all creditors and help maximize the repayment of his debts to his creditors."

The request also shows that Dankner's total debt to the banks is about NIS 419 million, including interest. The largest creditor is Bank Hapoalim, to which Dankner owes NIS 175 million; followed by Bank Leumi with a debt of NIS 162 million for loans to private companies Gandan Holdings and Gandan Investments, through which he held IDB. Dankner was a personal guarantor for these loans as well as for the debts of his cousin Danny Dankner.

Dankner's other debts are to Discount Bank (about NIS 120 million) and Mizrahi Tefahot Bank (about NIS 90 million).

The banks stress that for nearly two years they gave Dankner "repeated extensions" and negotiated with him to repay the debt, but according to them, he has not met his obligations.

Dankner: I’ll continue to act in good faith and transparently

Nochi Dankner said, "I have acted for many years, to the best of my ability, to repay my obligations from the perspective that this is a moral obligation of the highest order. Over the past decade, I have acted tirelessly, taken initiatives and worked day and night, and paid a significant cumulative amount of approximately NIS 110 million.

"In recent months, I have reached agreements with an investor to sell some of my shares in the foodtech company that I founded, in exchange for tens of millions of shekels, along with an additional investment on his part in the company. My intention was to use these proceeds to continue repaying my debts and to continue developing the company. Unfortunately, the investor reneged on his commitment. "As I have acted so far in good faith, transparently and with full cooperation, so I will continue to act from now on. My hope is that the process will be conducted with respect and fairness."

Published by Globes, Israel business news - en.globes.co.il - on April 27, 2026.

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