Creditors’ plan to be recognized in Vesttoo insolvency
S.Horowitz partners Noam Zamir and Ran Feldman, alongside associates Gal Kelner and Noa Lavian from the Dispute Resolution and Insolvency Practice, represented the Liquidating Trustee and Wind Down Officer of Vesttoo Ltd.
They worked on a motion to recognise and approve the company’s creditors’ plan, which follows a Delaware court’s endorsement of a plan related to an alleged creditorship of approximately USD 3 billion.
In its ruling, the Israeli court examined recently enacted provisions in the Israeli Insolvency Law that specifically address cross-border insolvency proceedings. For the first time, the court determined that foreign creditors’ plans do not have to fully align with Israeli legal provisions.
This decision aims to enable debtors to implement a comprehensive and coherent global plan, while also considering the principles of comity between Israeli and foreign courts.
Vesttoo was an Israeli fintech startup founded in 2018 by Yaniv Bertele, Ben Zickel and Alon Lifshitz. It was a platform designed to connect insurance companies with capital market investors acting as an alternative to traditional reinsurers. Investors would purchase what was known as an ‘insurance basket’ and would receive a payment for the risk they were taking on – and share the losses in the event of an insurance event.
