Michael and David Shabsels, brothers who operate a network of 22 overnight camps and eight day camps across New York, Pennsylvania, New Jersey and Maine—including Camp Mesorah and Camp Achim—declared Chapter 11 bankruptcy on June 4, both personally and under their holding company, Simad Holdings Ltd.
The cases were filed in the U.S. Bankruptcy Court for the District of New Jersey. Court filings show each brother holds a 50% stake in Simad.
The debtors reported estimated assets of $100 million to $500 million and liabilities of $500 million to $1 billion.
On Monday, Chief U.S. Bankruptcy Judge Christine M. Gravelle authorized the use of cash collateral and existing bank accounts to cover employee wages, payroll taxes and other essential expenses needed to open and operate the camps during the bankruptcy proceedings.
Mishmeret Trust Company Ltd., trustee for holders of Simad Holdings’ Series A bonds, has asked the court for copies of all filings so bondholders can participate in the case and protect their interests.
The bankruptcy filing comes as the summer camp season begins. eJewishPhilanthropy reported that camp representatives said programs would proceed as planned.
The outlet also reported that Simad Holdings recently missed payments on a $195 million Israeli bond.
