State starts bankruptcy proceedings against Dudi Appel over NIS 21m debt

The state yesterday motioned the courts to issue a bankruptcy warning against businessman David "Dudi" Appel, over a NIS 21 million debt.

The motion follows a 2007 Tel Aviv District Court ruling, which required Appel, a Likud activist who reportedly made millions from real estate deals, to pay the state NIS 21 million plus interest and linkage from 2005. He hasn't handed over the money, the state reported to the court yesterday.

Appel appealed that verdict, but no order of leniency has been issued by any court giving him more time to pay, says the state. Therefore, unless he does so within seven days or reaches an agreed-upon compromise, the state may file a bankruptcy motion against him, it says.

In 2007 Appel, the Vered Development and Investment Company, and Adirim Construction were ordered to pay the state NIS 21 million following a claim the state filed in 1992. Appel and the others abused the good faith of "naive officials" at the Housing and Construction Ministry in the course of urban renewal works, the court found, and defrauded the state of money.

Appel's representative, Israel Shalev, commented yesterday that he hasn't received the motion and doesn't understand why the state is making its move now, since the appeal is in process. Moreover, his chance of winning the appeal is very high, Shalev said. Appel was also known for his close relations with Ariel Sharon, the former prime minister, and his son Gilad Sharon.