One of the most prominent soccer teams in the Israeli Premier League is facing potential insolvency and has filed for a stay of proceedings in a move that has also seen it drop to the bottom of the league's standing. Hapoel Tel Aviv Football Club, which also competes in the Union of European Football Associations' leagues, has an accumulated debt of 100 million shekels ($26 million). The team announced Monday that it plans to motion the court for a stay of legal proceedings. The move will see owner Amir Kabiri lose control of the club in favor of a court-appointed trustee, who will try to reach a settlement with the club's creditors. A stay of proceedings is often sought by businesses facing insolvency as a means to avoid defaulting on debts. It allows debtors more time, as granted by the court on a case-by-case basis, to reach a settlement with creditors. Israel Football Association regulations state that a team that files for a stay of proceedings is immediately deducted nine points. This will leave Hapoel Tel Aviv with just five points after 12 matches and see it drop to the bottom of the Premier League's standings, which could potentially see it drop out of the league altogether, as it will be six points from safety. "The financial situation created in the club over the last 10 years has left the club no choice but to file a motion for a stay of proceedings over accumulated debts, obligations and legal exposures amounting to 100 million shekels," the club said in a statement. "Over the past 18 months, since owner Amir Kabiri took over the team, no effort or expense have been spared to stabilize the club's finances. After careful thought, however, the club concluded this [a stay of proceedings] is a necessary move. During the stay of proceedings, efforts will be made to find investors who can guarantee the club's financial future for years to come." The last two seasons have seen Kabiri invest over 60 million shekels ($16 million) in the club, but coming up with another 40 million shekels ($11 million) proved impossible. "I can't risk my family's future like that," he told associates Monday. It is believed the club opted to file for a stay of proceedings, despite the threat to its Premier League standing, so not to risk a 2 million euro ($2.2 million) sponsorship deal it has in the works with Chinese conglomerate CMEC. The Premier League administration confirmed the club has filed for a state of proceedings, saying it will work with the trustee aiming to promote its financial recovery.
