Tel Aviv Court Grants Stay of Proceedings for Avidan Brothers Bar Group
The Tel Aviv District Court granted a 30-day stay of proceedings for the Avidan brothers' nightlife group to formulate a debt arrangement. The 250-employee group faces 13.9 million shekels in debt following pandemic disruptions and the October 7 war.
The Tel Aviv District Court has granted a 30-day stay of proceedings for nine companies belonging to the Avidan brothers' nightlife group, alongside their shareholders, to formulate a comprehensive debt arrangement. The group, which operates seven bars and a gastro-pub employing roughly 250 workers, has faced severe cash-flow pressures compounded by the October 7 war and pandemic-era restrictions.
Total liabilities currently stand at 13.9 million shekels, alongside 750,000 shekels in unpaid October wages. Appointed settlement managers, attorney Yosef Vaknin and CPA Rafael Levy, stressed during the hearing that the shareholders' active personal involvement is critical for maintaining operations, noting their strong reputation in Israel's nightlife sector. To secure potential operating deficits during the 30-day freeze, the shareholders' parents have provided a 750,000-shekel guarantee backed by real estate equity.
During the proceedings, Idan Avidan highlighted the immense toll taken by years of forced closures and the ongoing conflict, emphasizing that the group has operated since 2002 without previously bouncing a single check. The settlement managers pointed out that while liquidation would yield negligible returns for creditors due to the reliance on goodwill and brand reputation, continued operations under close financial oversight could generate sustainable cash flow. The court also instructed the managers to coordinate with Israel Discount Bank regarding the continued operation of existing bank accounts under strict supervision.
