Mohawk Day Camp and Camp Blue Star, Set to Open

A bankruptcy judge will allow the 30 camps owned by Simad Holdings to access individual operating accounts so they can pay expenses this summer, according to court filings.

New Jersey Bankruptcy Court’s Chief Judge Christine Gravelle’s decision means that the popular summer camps, mostly in the Northeast, can open as expected in late June. A chief restructuring officer, Assaf Ravid, now has operational control, along with the camp directors, of each of the camp companies included in the bankruptcy.

Simad owners David and Michael Shabsels defaulted on their first payment to bondholders on May 31, then filed for bankruptcy June 4. The Shabselses, who are brothers, raised about $195 million in Israel in December 2025 by issuing bonds secured by some of the camps, including New York’s Mohawk Day Camp and Camp Kiwi and North Carolina’s Camp Blue Star.

The Shabselses structured the camps to have two entities each: one for the land and one for operations. For the most part, the brothers own both, usually through Simad or another jointly owned holding company. All but one camp entity, as well as the holding companies, the brothers personally and some of their multifamily and retail properties, filed for bankruptcy protection.

The camps serve about 20,000 children, and the news led to concerns about summer plans. At least two camps communicated to parents of campers that Simad’s bankruptcy would have no impact on the day-to-day operations of the camps.

“These are simply some behind-the-scenes matters that are being sorted out, but nothing that affects our campers, staff, or program,” wrote Adam Wallach, director at Mohawk Day Camp.

Since camps are seasonal businesses, much of their revenue comes from registration fees in the off-season. Expenses for supplies, payroll and vendor payments pile up during the summer. Gravelle’s order applies to camps’ banks to receive, process and pay all checks and transfers on their accounts during the bankruptcy case.

The Simad debtors filed an emergency motion asking for the camps — but not their creditors — to be able to access their cash, even as the bankruptcy proceeds. The Shabsels ceded control of the camps’ bank accounts to Ravid and the camp directors.

The camps do not appear troubled individually, according to an appraisal of the properties filed with the bond offering, which valued the portfolio at $466.6 million with a projected cap rate of about 10.5 percent for 2025. Mohawk Day Camp, for example, was supposed to generate $9.4 million in income, the report found.

But problems in the holding company came to light in May, when Simad disclosed in a filing that it had transferred $34 million to accounts controlled by the Shabselses. The company’s audit committee requested the money back, and the brothers agreed to return it but days later said they could not.

The Shabsleses owed more than $100 million to cash advance firms and short-term lenders.

Some contracts granted these firms access to debit the accounts of Simad or its affiliated companies.

In one, a Shabsels company, Damis Holdings, appeared to agree to pay 42 weekly payments, totaling $15 million, in exchange for $9.7 million from Swiss Fund LLC, according to an exhibit filed in a lawsuit in Connecticut.

But, “the SIMAD Debtors do not believe that the MCA [Merchant Cash Advance] Lenders have a perfected interest in the cash in the SIMAD Debtors’ bank accounts through deposit account control agreements,” according to the emergency motion.

The Shabselses could not be reached for comment. The brothers have homes in Westhampton Beach, Scarsdale and New York City.

Investigators from the Israeli Securities Authority requested information related to the transfer. The brothers have not been charged criminally. The Israeli news publication, TheMarker suggested the Israeli Securities Authority could extradite David and Michael Shabsels to Israel as part of the investigation.

The extradition of an American real estate developer would be an unprecedented move for the Israeli Securities Authority. Investigators would first have to obtain more information about the transfer of funds and the chances of recovering the $34 million. Attorneys for L. Mishmeret Trust Company, acting as trustee for the Series A bondholders, Riker Danzig and Chapman and Cutler, have filed notice of appearances in the bankruptcy proceedings.

Simad claims it received several inquiries from investor groups to acquire all or part of the firm’s assets for a significant amount, according to a filing on the Tel Aviv Stock Exchange this week.