High-profile case10/1/2026

OpenWeb Asked the Court for Protection From Creditors Over NIS 178 Million in Debt

Israeli software company OpenWeb applied to the Tel Aviv District Court for protection from creditors. The court appointed a temporary administrator for the company, but the source does not provide the final decision in the insolvency proceeding.

Key facts

•Court: Tel Aviv District Court
•Group liabilities: approximately NIS 178 million
•Debt to Liquidity: approximately $20 million
•Original credit: approximately $24.4 million
•Advertising expenditure investigated: approximately $8.6 million
•The case number and the statute applied are not specified

Why the Company Turned to the Court

The group’s total liabilities are estimated at approximately NIS 178 million. Of this amount, approximately $20 million is owed to the Liquidity Group. The credit was extended to the company in early 2025 by Mars Growth Capital of the Liquidity Group—initially approximately $24.4 million.

The Dispute With the Creditor

In September, the creditor demanded immediate repayment of the outstanding debt—approximately $20 million. OpenWeb claims that until then it had met its payment obligations and repaid approximately $4.7 million of the principal, but subsequently lost access to accounts containing millions of dollars, impairing its operations and its plan for new financing. Liquidity seeks to enforce its liens over OpenWeb’s assets, appoint a receiver, and reject the company’s application for temporary protective relief.

The Clash With Microsoft and the Decline in Revenue

In February 2026, Microsoft’s Xandr advertising division opened an investigation following suspicions of irregular internet traffic related to approximately $8.6 million in advertising expenditure. In June, the partnership was terminated: Microsoft withheld payments and demanded the return of funds already paid, while OpenWeb rejected the allegations. The company’s revenue had already fallen by 13.4% in 2024—to approximately $138 million.

What the Court Ruled

The Tel Aviv District Court ordered the appointment of a temporary administrator for OpenWeb. At the same time, the dispute with Liquidity continues regarding the liens, the appointment of a receiver, and the requested protection from creditors. The case number, the exact date of the court’s decision, the statute applied, and the final outcome of the proceeding are not specified in the source.

Background to the Crisis

OpenWeb was founded in 2012 by Nadav Shoval, Roy Goldberg, and Yishai Green under the name Spot.IM. In September 2024, the board removed Shoval as CEO; after a public and legal confrontation, the parties reached an agreement, and Jim Daily was appointed to lead the company. The effort to find a buyer did not result in a transaction, and the restructuring plan included approximately $14 million in new financing.

What this means for you

The appointment of a temporary administrator means that the company’s condition and assets are now being examined as part of a legal proceeding, while creditors seek repayment of the debts and enforcement of their collateral. For employees, suppliers, and other parties to contracts, this may create uncertainty regarding ongoing payments and the performance of contracts, but the application to the court does not in itself determine the company’s ultimate fate or the amount to be paid to each creditor.

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