Israeli Food Giant Faces Insolvency Proceedings Over Massive Debts

The Jerusalem District Court recently accepted the request of the Mateh Yehuda Regional Council and ordered the commencement of insolvency proceedings against M. MastiX Ltd., the owner of the MastiX brand. The council claimed the company had accumulated debts for municipal property tax (arnona) and sewage fees totaling approximately 1.27 million shekels for properties held in the Har-Tuv industrial zone and Moshav Even Sapir.

The regional council was represented by Adv. Gil Efrati, who argued that MastiX had failed to pay its dues for years, despite repeated demands, collection procedures, and asset attachments. According to Adv. Efrati, with the company ceasing operations and failing to settle its debts, the council had no choice but to seek insolvency proceedings to recover public funds.

M. MastiX Ltd., a private company established in 1999, produces and markets chewing gum. The council issued its first payment demand in 2015 for 119,000 shekels. By December 2019, a debt settlement was signed regarding the Har-Tuv property for 334,155 shekels. However, the council reported that none of the 24 checks provided by the company were honored.

The company’s counsel opposed the insolvency request, claiming the debt was disputed, time-barred, or related to properties no longer in their possession. Judge Avigdor Dorot rejected these arguments, determining that the 2019 settlement constituted a formal admission of debt, which effectively reset the statute of limitations.

The court concluded that the undisputed debt of 334,155 shekels exceeded the legal threshold for insolvency. Adv. Alon Rihani was appointed as the trustee, with a mandate to submit an initial report by November 5, 2026.