Shabsels' Simad Holdings Files Chapter 11, Threatening Network of About 30 For‑Profit Jewish Camps

Overview

• The Shabsels brothers and their holding company, Simad Holdings, sought Chapter 11 protection in New Jersey last week while the brothers also filed personal bankruptcy, with court papers listing at least $500 million in liabilities.
• The filings follow a December $195 million bond sale in Israel that was secured by 13 camp properties and a later disclosure that roughly $34 million had been transferred to entities controlled by the brothers.
• Israeli authorities and market actors suspended trading of Simad bonds, launched probes into the company’s disclosures, and bondholders moved the bonds toward junk status after interest payments went unpaid.
• Camp leaders have said summer programs will proceed as planned, but secured creditors with first liens and ongoing lawsuits could force property sales or other restructuring that would change camp ownership or operations.
• The case highlights tensions in the Jewish camp sector between for‑profit ownership and the nonprofit majority and could prompt sales, conversions to nonprofit stewardship, or longer legal and criminal proceedings to recover funds.