Difficulties and Compromise: The Project for Senior Lawyers Will Operate in a Reduced Format
Partners, a company offering office services to independent lawyers that recently encountered difficulties, received the green light from Sela Capital to be released from its lease agreement. Partners will vacate floors 34-35 in the HaArba'a Towers in Tel Aviv by tomorrow and will continue to operate in a reduced format in the Museum Towers.
By tomorrow (Monday), the company Partners, which offers office services to independent lawyers, is expected to vacate its equipment from the prestigious offices of Sela Capital on the penthouse floors 34-35 in the HaArba'a Towers in Tel Aviv. Partners is expected to continue operating in a reduced format in the Museum Towers, where it has been renting several floors for years, subject to the consent of the creditors. Thus, the deadlock Partners reached in the dispute with Sela Capital is expected to end, as Sela Capital gave the green light for its release from the lease agreement.
In the vicinity of Partners, they explain that this real estate downsizing is expected to rehabilitate the company and allow it to return to operating in a reduced format, noting that "this is a step in the right direction."
"A lease agreement higher than the market price"
Recall that the company Partners, which offers office rental services to about 600 independent lawyers, recently announced to its clients that it had applied to the court for a "stay of proceedings to formulate a comprehensive debt arrangement." The claim: a series of external circumstances beyond the company's control brought it to cash flow difficulties threatening its continued existence.
In that application, Partners declared that the danger of its collapse "is not theoretical," but that it is doing everything to bring about its rehabilitation. One of the issues troubling Partners was a contract signed with Sela Capital. In the application, it was written that the company is bound by a contract at a price higher than the market price, signed years ago under economic conditions completely different from those existing today. The claim was that Sela Capital insisted on the rental prices, refused to lower them, and sought to forfeit guarantees.
On the other hand, Sela Capital claimed that Partners breached the lease agreement unilaterally, refrained for months from paying the agreed rent, and decided on a set-off on its own initiative.
Within the framework of dialogue, Sela Capital agreed — out of a desire not to leave Partners' clients high and dry and to allow a real chance for rehabilitation — not to collect rent for the month of August 2026, and the contract is now expected to come to an end. Partners is expected to vacate the offices by tomorrow, and Sela Capital has already acted quickly to bring in a new tenant on September 1st to minimize damages. Information provided to Globes shows that the new tenant is expected to pay a higher amount than what Partners paid.
Operating plan for the company
The application concerning Partners' economic situation won the trust of the court, which determined that "preference should be given to the rehabilitation of the company." The court approved the operating plan and appointed Adv. Elad Afari as the debt arrangement manager. The injunction issued for the forfeiture of guarantees in favor of Sela Capital was canceled.
The goal of the operating plan, subject to the approval of the creditors, is to bring Partners to a sustainable life, in light of the fact that the company has "gotten rid" of the burden of the lease agreement with Sela Capital.
The arrangement manager was authorized to publish an invitation to submit offers for the purchase of the company or its activity, but according to information that reached Globes, what is on the agenda is the creditors' approval of the operating plan, not the sale of the company. Also, the shareholders gave 180,000 shekels as security for the operating plan.
Regarding credit card receipts pledged in favor of Bank Leumi, agreements were reached that a fixed charge lies on all receipts for June 2026, and any credit balance in the operating account after payments will be transferred to Bank Leumi. In addition, a personal guarantee was given by Adv. Dudi Zalmanovich, Chairman of Partners, and the B2 fund in the amount of 350,000 shekels out of 530,000 shekels.
Partners was founded by lawyers Elad Netz and Danit Lari. The company's chairman is Adv. Dudi Zalmanovich, and the CEO is Avi Klapa.
Partners: "We will continue to work for recovery"
On behalf of Sela Capital, it was stated: "Sela responded to the request of the office holder, Adv. Elad Afari, to assist him vis-a-vis the complex's clients, who needed time to organize, and also vis-a-vis the creditors' fund, which is obligated to return the advance paid by the clients. This was done in full cooperation and out of understanding for the needs of the clients who were harmed by the conduct of Lowspace (Partners)."
From Partners, it was stated that "in coordination between Sela Capital and the management of Partners, Partners will vacate floors 34-35 in the HaArba'a Towers at the end of August. Partners thanks Sela Capital for the cooperation. With the support of the shareholders, hard work of the company's management, and loyalty of most of the company's clients, Partners will continue to work for the company's recovery and the continuation of its activity on the other floors."
