Simad's Israeli bondholders expect to recover their money
Simad Holdings completed an auction of assets mortgaged to its Israeli bondholders at prices above book value, with proceeds expected to reach $345 million, a 13.5% premium. The collapsed US summer camps company's debt of NIS 620 million may be repaid in full, including interest on arrears. Major institutional investors include More Investment House, Meitav, Yelin Lapidot, IBI, and Harel. Sales require court approval in New Jersey, with completion expected in September.
Simad Holdings, the collapsed US summer camps company, reports that it has completed an auction of assets mortgaged to its Israeli bondholders at prices above book value, raising hopes that the NIS 620 million debt will be repaid in full. The auction, conducted at the end of July by chief restructuring officer Assaf Ravid together with US investment banks and lawyers, received bids representing a 7% premium on book value. Assets mortgaged to the bond series are expected to yield $321 million, compared with a balance sheet valuation of $282 million. Including the private sale of the Achim camp ($7 million) and the Chen-a-Wanda camp ($17 million), total proceeds reach $345 million, a 13.5% premium on the $304 million book value. The debt was raised last December. Creditors may receive principal plus interest on arrears due to the swift collapse and problematic behavior of owners Michael and David Shabsels. Major institutional investors include More Investment House (NIS 190 million), Meitav (NIS 86 million), Yelin Lapidot (NIS 47 million), IBI and Harel (NIS 28 million each). Klirmark Capital and Brosh Capital Partners bought bonds after the collapse at discounted prices. Sales require court approval in New Jersey, with completion expected in September.