Tel Aviv Stock Exchange Suspends Kohan Properties Bonds Amid Financial Chaos
The Tel Aviv Stock Exchange suspended trading in Kohan Properties bonds after the US real estate firm revealed severe financial uncertainties and legal challenges regarding its pledged assets.
The Tel Aviv Stock Exchange suspended trading in the Series A bonds of the American real estate company Kohan Properties Limited following an unusual disclosure regarding significant uncertainties about its financial situation and bondholders' collateral validity.
Only last month, Amos Luzon acquired the company for 19.5 million shekels, partnering with Oren Halfon's Alpha Hedging. Luzon purchased a 60% stake, while Alpha acquired the remainder. This followed Netanel Lorenzi taking control of the company's shares. Kohan had issued bonds in Tel Aviv earlier this year. Reports later emerged that Mike Kohan had unauthorizedly withdrawn funds for private business purposes, prompting bondholders to take action against him. He subsequently pledged the shares to Lorenzi, paving the way for the buyout.
The turmoil began in late October when Kohan reported a material error in its Q2 2026 financial statements requiring correction. The situation escalated dramatically when the company revealed that third parties had raised written claims and initiated legal proceedings challenging its rights to several assets and holding companies.
Crucially for investors, these disputes affect assets pledged as collateral for the company's bondholders. Kohan stated that profound uncertainty surrounds ownership, financing, and liens on certain properties, prompting a comprehensive legal review by its US attorneys.
Due to the complex internal probe, Kohan announced it cannot meet Israel Securities Authority deadlines. It will fail to publish its revised Q2 reports on time and expects to miss the Q3 2026 reporting deadline as well, with no estimated date currently available for releasing full financial statements.
Consequently, the Tel Aviv Stock Exchange suspended trading in Series A bonds to protect investors. If Kohan fails to meet conditions for resuming trading in the coming weeks, the matter will be referred to the exchange's board of directors for a decision on December 15. Bondholders may submit written arguments ahead of the session until December 8.
