The Ze Sushi chain, which has operated in Tel Aviv since 2006, has accumulated debts of about 19 million shekels. And yet its restaurants continue to operate as usual.
How is that possible? The Tel Aviv District Court granted the group's companies and its controlling shareholders a temporary stay of proceedings order, until a hearing scheduled for October 20.
What this means in practice:
1. A stay of proceedings halts the creditors' race.
While the order is in effect, legal proceedings and collection against the company are frozen, so that it can conduct orderly negotiations on a debt arrangement.
2. Management stays in place.
The company continues to run the business, and the court appoints an arrangement administrator who supervises and helps reach agreements.
3. The clock is ticking.
For a corporation, the order is granted for an initial period of up to 45 days, and it can be extended up to a total of 120 days.
According to the application, the group's revenues in 2025 were more than 35 million shekels, and the owners argue that the problem is one of cash flow, not a collapse of the business. This is exactly the kind of situation the tool was designed for: a business with real activity that its debts will not let breathe.
The bottom line: whoever identifies cash-flow distress early, before the attachments begin, leaves themselves more options.
And if you are on the creditor's side? The order does not erase the debt. It freezes collection while an attempt is made to reach an arrangement.