An Italian company undergone bankruptcy proceeding while proceedings in Israel were open. The Italian Court held that no proceedings may be opened against the company. The Italian company sought to cancel the liens imposed in the Israeli proceedings.
The Israeli Court held that one may affect a foreign bankruptcy verdict in Israel as an ancillary issue in another case, but the Court is not obligated to so decide at it is an issue of an equitable relief that requires a bona fide behavior. In this case, the Italian company withheld information of the existence of the foreign proceeding and made false representations as to it financial status and because of this mala fide behavior the foreign verdict will not be affected and the liens shall remain intact.