Over the past few years, there has been an increase in corporate entities in Israel facing a financial crisis leading them either into liquidation or forcing them into a recovery process. Israeli law provides various tools with which to handle such situations. This article provides an outline of the key principles of insolvency proceedings in Israel, the legal tools available to Israeli corporations in financial crisis, creditor rights in such proceedings, and the legislative changes expected in this area. By Yuval Bargil, partner and Gil Oren, partner at Yigal Arnon & Co.