On March 31, 2015, it was announced at another meeting of the group members that from an informal conversation between architect Erez Ella and Ms. Or with the chairperson of the local planning and building committee, there was feasibility for the approval of the project, to the extent that joint planning would be carried out with the adjacent lots on El Al Street (Appendices 63-64 to the defendants' affidavits).
On November 11, 2015, the project plan was discussed before a planning forum of the Engineering Department of the Ramat Gan Municipality, accordingto which a 30-story building would be built on the site (Appendix 66 to the defendants' affidavit). The plan was discussed again before this forum on February 10, 2016.
- But in the meantime, asyou can see, the months and years passed and the construction project did not get off on either Lot 104 or Lot 102. This is because all efforts have been devoted to promoting integrated building plans.
In light of the growing frustration among the members of Group 102, Green City offered (on May 19, 2015) to those interested in canceling the transaction and receiving their money back. The proposal was conditional on at least half of the rights holders in the group returning their rights to the group organizer (Appendix 5 to the statement of claim). But this channel has not been realized either.
Many members of the group turned to separate representation, and hired the services of S. Horowitz & Co., in light of their claim that Ms. Or chose to withdraw from the commitments she provided. In a letter sent on their behalf (on November 15, 2015), Ms. Or was asked to allow the return of the funds, or alternatively, "You are required to waive all your rights in the project, whether by yourself or through the companies you own (directly or by chain), and to allow the group members to promote the project independently without any involvement on your part and/or on your behalf" (paragraph 24 of the letter; Appendix 7 to the statement of claim). The letter also noted that those who sent it had lost their faith in her definitively.
- No agreements were reached, and at the same time, as we have seen, Ms. Or's professionals continued to promote the plan that would allow the construction of many housing units on the site, until the beginning of 2016.
The collapse of Ms. Or's membership system and the process of their consolidation
- And now, in February 2016, Ms. Or was arrested by the VAT authorities, and a liquidation application was filed against Or City Real Estate. Later, her entire group of companies, including Greeny City, collapsed, and Ms. Or entered bankruptcy proceedings.
At this stage, the defendants were no longer involved in representing the group.
- In April 2016, this court issued a liquidation order for Ms. Or's companies (the Honorable President Eitan Orenstein; liquidation case 59196-02-16) [Nevo]. Eitan Erez was appointed as a temporary liquidator, and later as a permanent liquidator for the purpose of receivership and management of the Group's assets (hereinafter: Adv. Erez or the liquidator).
Subsequently, the court approved the liquidation of the arrangement (Appendix 8 to the statement of claim) in which it was agreed that lots 102 and 104 would be sold jointly to a third party by the special managers (who are the three of them together: the liquidator, Adv. Amir Palmer (the lawyer of Group 102) and Adv. Alon Peles (the lawyer of Group 104)); and it was further agreed that the consideration received would be divided (after deducting expenses and salaries of officers) so that 20% of it would be transferred tothe members of the Group 102. and 80% of it goes to members of the 104 group.