Simad's Israeli bondholders expect to recover their money
Simad Holdings, a company that collapsed following embezzlement allegations, has successfully auctioned its US summer camp assets. The proceeds are expected to allow the company to repay its Israeli bondholders in full, including interest.
Why it matters
This outcome provides financial relief to institutional investors and pension funds that were previously facing significant losses.
Is the end in sight for the affair of the collapse of US summer camps company Simad Holdings (TASE: SIMD)? A little over two months since the affair of alleged embezzlement of the money invested by bondholders in Tel Aviv (a debt of NIS 620 million), Simad Holdings reports that it has completed an auction of the assets mortgaged to the Israeli bondholders, at prices above book value.
According to the company’s announcement, in the auction conducted at the end of July by the chief restructuring officer appointed to Simad Holdings ,Assaf Ravid, together with investment banks and lawyers in the US, it received bids for its assets (summer camps in the US) representing a 7% premium on their book value.
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