"Trump changed policy": The company that provided services to Israeli emigrants is in millions of debt
The company Momo Global Marketing and Distribution (MAGASHA) has filed for bankruptcy due to debts exceeding 20 million shekels. The crisis is attributed to stricter US immigration policies and broader economic challenges.
Because of Donald Trump? The company Momo Global Marketing and Distribution (MAGASHA), which for 14 years has provided international services to private clients seeking to emigrate from Israel abroad, and primarily to the USA, filed an urgent request today for an order to open proceedings after falling into debt of more than 20 million shekels. The company noted in its request that there is urgency in the request and therefore a discussion and the issuance of an urgent order are requested, as there is a potential buyer for the company who can contribute a significant sum.
As part of the request, the company claims that in 2025 it encountered a significant cash flow and economic crisis that worsened to the point of insolvency. The crisis stemmed, among other things, from an erosion in the company's profitability, especially in light of the change in immigration policy in the USA during the term of President Donald Trump starting in January 2025.
"For years, the company's activity was based to a large extent on the services provided in the field of immigration to the USA. With Trump's entry into the position of president at the beginning of 2025 and the administration's announcements regarding a change in immigration policy, including the intention to reduce and even cancel the Green Card lottery program and tighten immigration policy, there was a fundamental change in market behavior and a significant decrease in demand for the company's services," it was claimed.
It was further claimed that the war in Iran in March 2026 and the crash of the dollar exchange rate eroded the company's revenues. The company emphasizes that until 2025 it was profitable but in light of the aforementioned changes - it became loss-making. MAGASHA, which employs about 123 workers, claims through Dr. Gilad Waxelman from the firm Herzog, Fox & Neeman that it operated for about 14 years in the field of international services for private clients seeking to promote immigration, employment, study, and related services options in various countries, led by the USA.
In fact, the company's goal was to make the registration process accessible to the general public, which for most applicants included technical complexity, formal requirements, filling out forms in English, and understanding the requirements of the US immigration authorities. The company also notes in the request that as of the date of filing the request, and even though there are parties interested in purchasing it, no ready and available source has been found to provide the significant funding needed for the continuation of its operations and the repayment of its immediate obligations. It is also claimed that the company lacks sufficient sources to pay its employees' salaries and to meet its current obligations.
MAGASHA notes that after considering the options available to it, the company concluded that there is no choice but to file this request for an order to open proceedings.
"The appointment of an independent trustee will allow for the consolidation of the company's assets and rights, the preservation of its systems and documents, the examination of the debt and asset situation, and the realization of its assets or rights in a way that maximizes the return to creditors. It will also allow employees to receive payment from the National Insurance Institute."
