Heftsiba group will file for temporary bankruptcy at the Jerusalem Magistrate Court on Sunday during which it will present a recovery plan.
On Thursday, the court will hear the petition of the company's customers requesting the appointment of a temporary liquidator for four of the group's companies to take over the group's housing project in the Har Homa neighborhood near Jerusalem.
The customers expressed concern for their investments, and over the weekend dozens of customer broke into the project for fear of losing their new homes.
Customers Gideon and Tamar Ben-David claimed in the petition that they paid the complete sum of NIS 1million ($232,000) but did not receive bank guarantees for the payments, as required by law.
The petitioners also expressed fear that the company's collapse would bring in subcontractors and other creditors who would take over their apartments.
The liquidation request refers to four of the group's public companies, namely, Heftsiba Housing, Heftsiba Jerusalem, Heftsiba Global and Hefstiba Hofim.
In the meantime, the court has headed the buyers' request and appointed a temporary liquidator until the bankruptcy hearing at the end of the week.
The Tel Aviv Magistrate Court in the meantime rejected the request to recognize the ownership of the buyers in Heftsiba's Kfar Yona housing project, who broke into their apartments last week in order to establish ownership.
The court said that the buyers heard of the company's collapse through the media and took the law into their own hands, and the court would not validate such a move.