Simad Sells US Summer Camp Assets for $368 Million Amid Debt Crisis

Simad, an operator of summer camps in the United States, sold its core assets for $368 million following a sale process held between July 27 and 31. The company, which had raised 620 million shekels from Israeli institutional investors in December, filed for court approval of the transactions in New Jersey on August 1. The assets were recorded on Simad's books at $345 million, meaning the sale price exceeded the book value by $24 million.

Despite the sale, Simad has faced significant financial difficulties. Five months after the capital raise, the controlling shareholders withdrew approximately $34 million from the company and its subsidiaries, leading to missed payments to bondholders. The sale proceeds are expected to generate $312 million for holders of Simad's Series A bonds, with total proceeds potentially reaching $336 million after earlier sales. However, the final distribution of funds to creditors depends on court rulings and priority arrangements.

In June 2026, Simad's bond series was declared immediately due following revelations that controlling shareholders David and Michael Shabsis took loans totaling about $33 million, secured by company assets. Prior to this, Simad's total debt stood at $270 million, including $210 million owed to bondholders and $60 million to banks. The company's debt collapse highlights serious failures by the prospectus authors and regulatory overseers responsible for assessing Simad's financial and corporate structure before the bond issuance.