After disclosing that its owners had emptied its cash reserves, US summer camps company Simad Holdings (TASE: SIMD) reported on Friday that it had filed for chapter 11 protection in New Jersey against its creditors.

The company is owned by brothers Michael and David Shabsels. Last December, it raised NIS 620 million in a bond offering in Tel Aviv from a group of financial institutions headed by More investment House and Meitav. It has now revealed that the owners owe $100 million in personal loans. It added that it appeared that they had given the lenders authority to charge their accounts and those of the company.

The company also reported that a chief restructuring officer, Asaf Ravid, had been appointed, and that he would be in contact with the various parties concerned in order to try to revive the company and its business.

Thl Securities Authority has opened an inquiry and requested documents from the company.

Two weeks ago, Simad reported that owner and CEO Michael Shabsels transferred $32 million from the company to personal accounts. The suspicion also arose that he had mortgaged the company’s accounts to his creditors. The transfer mean that the company could not meet the interest payment due to its bondholders, and trading in the bonds on the Tel Aviv Stock Exchange was suspended.

Published by Globes, Israel business news - en.globes.co.il - on June 7, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.