N12 News has discovered that real estate company “Rom Kinneret” is currently facing financial difficulties. Some employees have not received their salaries for the past month, and others have chosen to resign. A group of employees has submitted a request for the company’s liquidation to the Tel Aviv District Court on Friday. These employees fear that the company’s collapse will lead to further unpaid wages and negatively impact ongoing projects.
The request to open insolvency proceedings was filed by three current employees and three former employees, represented by lawyers Guy Sarosi and Uriel Zaira from the law offices of Sarosi & Co. and Zaira David. In addition to these employees, others have also expressed concerns about the company’s uncertain future and its current state.
The CEO of Rom Kinneret is reportedly abroad and has stopped communicating with the employees. He has claimed that he is in Dubai seeking investment opportunities to rescue the company from its current financial situation.
The company’s website promotes its involvement in various projects, including the construction of five 25-story towers in Bat Yam known as “SeaTowers”, as well as a large commercial and residential center called “B-towers”.
According to the submitted request, some employees claim that they did not receive their salaries for the month of July and fear that they will also not receive payment for August. They also allege that other payments, such as pensions, have not been transferred in recent months. The estimated debt owed by the company to its employees is at least one million shekels. Furthermore, employees have been resigning due to worsening conditions.
Lawyers Sarosi and Zaira, representing the employees, stated that it seems inevitable for “Rom Kinneret” to enter insolvency proceedings given the recent sequence of events. They have expressed concerns about the potential danger this poses to hundreds of property buyers who have invested in the company’s projects. The lawyers highlighted that these buyers do not have guarantees according to the law of sale, and the company has not provided any substantial security beyond a warning note on the land. They draw similarities between “Rom Kinneret’s” conduct and that of companies involved in the Peri Real Estate case, in which they represented hundreds of property owners.
The submitted court application also mentions past fines imposed on the company for violating sales law. The reasoning behind the fines was the company’s failure to provide necessary guarantees and safeguard buyers’ money.
In response to these allegations, “Rom Kinneret” claimed to be surprised by the lawsuit and the speed with which it was filed. They argued that the lawsuit mainly focuses on a former employee and that counterclaims should not be made in this manner. The company stated that all employees, including the plaintiffs, received their salaries in full for the month of June. They mentioned that the reason for not transferring salaries for July is not appropriate to discuss in this context. They discredited the claims made in the lawsuit, accusing the former employee of using the lawsuit as a means of pressuring the company and blackmailing them.
Regarding the claim amount stated in the lawsuit, “Rom Kinneret” stated that it does not exceed 50,000 NIS even if they agree with everything requested. They disputed the claim of one million NIS and accused the plaintiff of exaggerating the figures. The company also revealed that the main plaintiff who won the lawsuit had completed his employment with them three months ago, but out of goodwill, they continued to pay his salary until June and even provided him with a company car.
It remains to be seen how the court will proceed with the employees’ request for insolvency proceedings and the resolution of the financial turmoil faced by “Rom Kinneret”.