Hefziba is was among the strongest, oldest, largest and most stable building building companies in Israel. They build all over, I would say they specialize in apartments for Chareidim and Settlers.

Last night they unexpectedly declared bankruptcy after a last ditch attempt to sell the company to Electra seems to have failed (or it failed after they found themselves forced to declare bankruptcy – that is still unclear). Hefziba has debts out in the range of 800 million shekels (around 460 million shekels of that to subcontractors).

All over the country, people are breaking into homes they purchased but had not yet received. People who put down money are breaking in to take ownership of their homes, while subcontracters are breaking in to take out what they installed and didn’t get paid for (sinks, doors, floors, faucets, etc).

This has some serious ramifications as a lot of people are going to be financially hurt here. This is the sort of thing that can snowball to a lot of other companies.


Electra may still bail them out. They are discussing that this afternoon.