In a receivership case filed in Israel, Israeli receivers filed petitions for recognition under chapter 15. The Israeli receivers were appointed by the Tel Aviv-Jaffa District Court in various cases. The court noted that "[r]eceivership proceedings in Israel are commenced and conducted pursuant to Sections 194-201 of the "Companies Ordinance [New Version] 5743-1983.
The Israeli receivers pursued the Israeli receivership case after the debtors filed for relief under chapter 11 in the United States. The Israeli Court declined to give effect to the automatic stay based on the presumed illegitimacy of the chapter 11 cases due to the failure of the debtors to properly register the automatic stay order in the Israeli Receivership proceeding and on principles of comity. The U.S. Bankruptcy Court noted that the Israeli Court appeared to overlook the automatic imposition of the automatic stay and the lack of dismissal or abstention with respect to the U.S. bankruptcy cases.
The debtors filed an adversary proceeding in the U.S. bankruptcy court seeking a temporary restraining order against the Israeli creditors.
