SIMAD Holdings Ltd. - Chapter 11 Case Summary

Business Description

Headquartered in Trumbull, CT, SIMAD Holdings Ltd. ("SIMAD Holdings"), a British Virgin Islands company, together with its affiliated debtors and debtors-in-possession (collectively, the "SIMAD Debtors"), owns and operates 30 summer camps around the country, which are held indirectly by SIMAD Holdings. The SIMAD Debtors purchase, manage, and operate summer camps for children and teenagers aged 7 to 16, comprising both day camps and sleepaway camps.

• One of the 30 camps, Willow Lake Day Camp, is not a chapter 11 debtor. Separately, certain affiliates that own and operate multifamily properties, offices, hotels, and retail space also filed emergency chapter 11 petitions and are being separately administered from these cases.
• The camps are located predominantly throughout the eastern United States, including in New Jersey, New York, Maine, and Pennsylvania, among others, with approximately 20,500 children enrolling each year. As much as 5% of the campers are from outside of the United States.

Since 2006, the SIMAD Debtors have employed thousands of employees across their various properties, including directors, counselors, educational staff, medical staff, kitchen staff, and maintenance teams. The SIMAD Debtors recruit high-quality staff who have ample experience in fields of training, pedagogy, safety, and management.

• In addition to employing regionally located camp staff, the SIMAD Debtors also hire international staff members for the summers who reside in the United States on a work visa.

Camp Portfolio

The summer camps within the SIMAD Debtors' umbrella are: Camp Achim, Banner Day Camp, New England Golf & Tennis Camp, Blue Star Camps, Camp Chateaugay, Camp Chen-a-Wanda, Club Getaway, Country Roads Day Camp, Eagle's Landing Day Camp, Camp Echo, Camp Green Lane, Indian Acres Camp for Boys & Forest Acres Camp for Girls, Island Lake Camp, Kiwi Country Day Camp, Camp Lavi, Camp Lokanda, Malka, Meadowbrook Country Day Camp, Camp Med-O-Lark, Camp Mesorah, Camp Mogen Avraham, Mohawk Day Camp, Camp North Star, Pine Forest Camp, Rolling Hills Day Camp, Summit Camp and Travel, Camp Waukeela, Camp Wekeela, and Windsor Mountain Summer Camp.

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Operations Overview

The SIMAD Debtors' camps capture a large and diversified audience through the various types of camp options offered, such as camps focused on sports, academics, arts, technology, and religion. Each camp has its own unique character and internal culture, and the camps are separately branded and operate independently, including through their own management team, individualized staff, distinct accounting departments, and dedicated operational infrastructure.

Facilities and Programming

An average summer camp operates on dozens to hundreds of acres of land, which include residential facilities (i.e., cabins or rooms), a central dining hall, sports facilities (basketball, soccer, and tennis courts, and swimming pools), arts and crafts areas, theatre, natural spaces, hiking trails, and a clinic.

• The camps' daily activities are typically structured by pre-planned, full-day agendas and include wake-up calls, breakfast, morning activities, lunch breaks, afternoon activities, dinner, and evening social activities.
• The camps operate full residential programs under the supervision of a professional staff, with each group of campers assigned to a dedicated counselor.
• All in all, the camps provide a comprehensive package where each camper is covered for their accommodation, meals, classes, activities, basic medical services, and sometimes organized transportation from central pick-up points. These are services that the SIMAD Debtors arrange for well in advance of the summer to make sure the appropriate vendors and accommodations are ready for the season.

Revenue Model

The camps' main source of income is derived from payments of the registration fees made by parents for their children's participation in the summer camps. Deposits for any given summer are due the year prior, and registration and payments are made in advance of the summer season. By comparison, the SIMAD Debtors' expenses for one summer season alone cost tens of millions.

• Another portion of income, albeit less material, is generated through the sale of food and clothing on the campgrounds, as well as from the SIMAD Debtors leasing the space during the year to private events or groups and educational institutions.

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Prepetition Obligations

As of the date hereof, the SIMAD Debtors owe approximately $344 million to secured creditors. The SIMAD Debtors' prepetition capital structure is summarized below:

Debentures (Series A)

• Prior to the Petition Date, SIMAD Holdings Ltd., a BVI holding company and the ultimate parent company of each of the SIMAD Debtors, raised bonds on the Tel Aviv Stock Exchange in December 2025. These nonconvertible certificates of indebtedness (the "Debentures (Series A)") are publicly held, offered to the public in Israel, and registered for trading on the Tel Aviv Stock Exchange.
  • The Debentures (Series A), with a par value of NIS 620,000,000 (or approximately $211,600,000), bear a fixed annual interest rate of 7% and are not linked (principal and interest) to any index.
  • In order to secure the SIMAD Debtors' obligations toward certain Israeli Bondholders with respect to the Debentures (Series A), SIMAD pledged certain collateral in favor of the Bondholders and the Trustee for the Bondholders.
  • The principal payments were to be made annually on November 30 each year from 2026 through 2030, with interest to be paid semi-annually on May 31 and November 30 from 2026 through 2030.
  • The SIMAD Debtors defaulted in making the first interest payment due on May 31, 2026. As of the date hereof, the principal amount of the outstanding Debentures (Series A) is approximately $214 million using the exchange rate as of the Petition Date.

Bank of New Hampshire Loans

• On or about December 2021 and July 2023, certain SIMAD Debtors entered into loan agreements with the Bank of New Hampshire in the amount of $27 million and $6 million, respectively (the "BNH Loans").
  • The BNH Loans are secured by, among other things, mortgages on property owned by certain of the SIMAD Debtors' summer camps, an assignment of leases and rents, and security interests in other collateral.
  • As of the date hereof, the outstanding balance of the BNH Loans is approximately $29 million.

MCA Loans

• In the weeks and months leading up to the Petition Date, the SIMAD Debtors became obligated on short-term loans (the "MCA Loans") provided by approximately forty-two (42) merchant cash advance and short-term funders and lenders (the "MCA Lenders"). As of the Petition Date, the MCA Loans total in excess of $100 million in the aggregate.
  • In general, the MCA Lenders were granted security interests in certain of the SIMAD Debtors' collateral in the MCA Loans, subject to further review and investigation by the SIMAD Debtors, and in many cases the MCA Loans were guaranteed by multiple entities within the SIMAD Debtors' organizational structure.
  • In many cases, the MCA Lenders were also given access to the SIMAD Debtors' bank accounts through ACH authorizations contained in the loan agreements.
  • Leading up to the Petition Date, the SIMAD Debtors were concerned that, if a single MCA Loan with an MCA Lender went into default and was accelerated, such MCA Lender may exercise remedies that may have left the SIMAD Debtors without access to cash and accounts receivable.

General Unsecured Claims

• As of the date hereof, the SIMAD Debtors estimate that the aggregate amount of general unsecured claims is approximately $2.7 million.

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Events Leading to Bankruptcy

Liquidity Crisis and the Filing

Assaf Ravid was engaged as Chief Restructuring Officer (the "CRO") of the SIMAD Debtors pursuant to an engagement letter dated as of June 2, 2026. Immediately following his engagement, it became apparent that the SIMAD Debtors would not be able to satisfy their funded debt obligations without a chapter 11 filing and required an emergent filing to avoid potentially catastrophic impacts on the SIMAD Debtors' operations and upcoming summer camp season.

• As of May 31, 2026, the SIMAD Debtors were in default on payments owed to Israeli Bondholders in connection with obligations due under certain Debentures (Series A).
• In addition, the SIMAD Debtors were obligated on MCA Loans that, in some cases, had maturity dates in early June. To the extent that such MCA Loans were unpaid and accelerated, the MCA Lenders may have been able to exercise remedies across the entire SIMAD Debtors' organizational structure.
• Given the possibility that lenders could immediately exercise their rights, the SIMAD Debtors were forced to file these Chapter 11 Cases.

Go-Forward Strategy

The CRO's primary goal at the outset of these Chapter 11 Cases was to obtain full operational control of the business and ensure that the summer camps can open this summer.

• To that end, the CRO has been working closely with all camp directors to provide them and their campers with the assurances that they need to be able to operate in the ordinary course of business and without disruption.
• The CRO is also in the process of obtaining control over the SIMAD Debtors' bank accounts and removing the SIMAD Debtors' controlling shareholders' ability to access such accounts. These efforts are active and ongoing.
• Together with the SIMAD Debtors' professionals, the CRO is in the process of exploring an expedited financing and/or sale transaction for the SIMAD Debtors' assets. Since the Petition Date, the CRO has received expressions of interest from numerous parties that may be interested in pursuing a transaction with the SIMAD Debtors, with the goal of providing clarity to all stakeholders that the SIMAD Debtors and their summer camps will be able to operate normally going forward and that these Chapter 11 Cases can conclude in a manner that best positions the SIMAD Debtors for future success.

Finally, the full circumstances that led to the filing of the Chapter 11 Cases are still under investigation by the SIMAD Debtors and their professionals, and the SIMAD Debtors will provide the Court and other parties in interest with updates as additional facts come to light.