Bondholders called to action: Pacific Oak to update on its status, and Hephzibah Jerusalem to discuss fund distribution

Two different companies, two different stages of debt restructurings: Pacific Oak and Hephzibah Jerusalem Gold have convened bondholder meetings to discuss the future of their investments and emerging arrangements.

Hephzibah Jerusalem Gold will present Series C bondholders with a conditional arrangement for fund distribution, formulated with the special manager and the Official Receiver. Simultaneously, Pacific Oak will hold a reporting and consultation meeting for Series B and D bondholders against the backdrop of debt restructuring talks at the company.

Two separate bondholder convenings, representing two different stages of financial distress, have come onto the capital market agenda. Hephzibah Jerusalem Gold, which is undergoing complex proceedings vis-à-vis state authorities, will present Series C bondholders with a conditional arrangement for fund distribution. Simultaneously, foreign real estate company Pacific Oak is convening Series B and D bondholders for an update and consultation meeting as part of its ongoing efforts to reach a debt restructuring.

Hephzibah: Conditional arrangement with the Official Receiver

The trustee for Hephzibah Jerusalem Gold's Series C bonds, Mishmeret Trust Company, has convened a consultation meeting for October 8, 2026 (2026-10-090547). On the agenda is a significant discussion regarding a "conditional arrangement" formulated between the company, its special manager, and the Official Receiver. The purpose of the arrangement is to enable dividend distributions, while also regulating the payment of fees to the special manager and a supervisory fee to the Official Receiver (2026-10-090547).

The very involvement of these parties—a special manager and the Official Receiver—indicates that the company is at an advanced stage of insolvency proceedings. The meeting, which will be held via Zoom, is intended for reporting and discussion of the arrangement, but no vote will take place. This is an opportunity for bondholders to understand the details of the outline, a copy of which was attached to the notice, and to hear about the potential distribution of funds after the deduction of proceeding expenses.

Pacific Oak: Continuing restructuring talks

In another case, the trustee for Pacific Oak's Series B and D bonds, Reznik Paz Nevo Trusts, convened reporting and consultation meetings for October 5, 2026 (2026-10-089271). Similarly to Hephzibah, these meetings will also be held via Zoom and without votes. Their purpose is to provide holders with an update on events and actions taken since the previous meeting.

Two central topics will be on the agenda: a report by the joint bondholder representative committee, and an update by the company itself (2026-10-089271). Convening a meeting of this type, defined as "reporting and consultation," indicates that talks between the company and the holders are ongoing, but a final, agreed-upon outline has not yet been reached that can be brought to a vote. The discussion will allow holders to receive an up-to-date picture of the company's financial status and the progress of negotiations for restructuring its debts.

Both cases, despite their differences, highlight the challenges facing corporate bond investors, especially when issuing companies run into difficulties. While Hephzibah already involves a stage of asset distribution within a formal legal proceeding, at Pacific Oak the process is still at the negotiation stage in an attempt to find a solution that will prevent further deterioration.