Is the end in sight for the affair of the collapse of US summer camps company Simad Holdings (TASE: SIMD)? A little over two months since the affair of alleged embezzlement of the money invested by bondholders in Tel Aviv (a debt of NIS 620 million), Simad Holdings reports that it has completed an auction of the assets mortgaged to the Israeli bondholders, at prices above book value.
According to the company’s announcement, in the auction conducted at the end of July by the chief restructuring officer appointed to Simad Holdings ,Assaf Ravid, together with investment banks and lawyers in the US, it received bids for its assets (summer camps in the US) representing a 7% premium on their book value.
Of these, the assets mortgaged to the bond series issued by Simad Holdings are expected to yield proceeds of $321 million, which compares with a balance sheet valuation of $282 million. Together with the private sale of the Achim camp ($7 million), which has already been completed, and the sale of the Chen-a-Wanda camp ($17 million), which is expected to be completed by the end of September, the proceeds on the sales of the assets mortgaged to the creditors total $345 million, representing a 13.5% premium on the book value of $304 million.
A long list of financial institutions that invested in Simad Holdings bonds will breathe sighs of relief. After it looked as though their money was a lost cause, the chances are now growing that the debt raised last December will be repaid in full.
In addition, because of the swift collapse of the company and the problematic behavior of its owners, brothers Michael and David Shabsels, the creditors can expect to receive not only repayment of the principal, but also interest on arrears.
Among the institutions that invested in Simad Holdings bonds, More Investment House stands out. Through its mutual, provident and pension funds it invested NIS 190 million, representing over a quarter of the offering. Alongside More, Meitav (NIS 86 million), Yelin Lapidot (NIS 47 million) and IBI and Harel (NIS 28 million each) also held Simad Holdings bonds on the eve of its collapse.
The biggest gains from the Simad assets sale will be recorded by two funds that specialize in investment in companies in distress and that bought a substantial portion of the bonds after the collapse. "Globes" has leaned that, in a series of off-floor transactions, Klirmark Capital and Brosh Capital Partners bought Simad bonds from the institutions to the tune of tens of millions of shekels after the affair broke at the end of May and the prices of the bonds plummeted by more than 50%.
In order for all these gains to be realized, the sale of the assets has to be approved by the court in New Jersey. Assuming that this is forthcoming, the sales will be completed in September, although this is dependent on binding agreements being signed. Simad Holdings says that for most of the assets several bids were received, so that if a winning bid does not mature into an agreement, it will be able to turn to another bidder.
"I believe that the bondholders will get all their money back," a large investor in Simad Holdings bonds said. "The assets mortgaged to the bonds were good, and it’s the case that they are going to be sold at prices higher than their book values. This is a very rare thing for BVI companies, where the books are usually inflated."
Published by Globes, Israel business news - en.globes.co.il - on August 10, 2026.
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