Simad Holdings Ltd. has received approval from the U.S. Bankruptcy Court for the District of New Jersey to launch a sale process for its portfolio of 30 sleep-away camps while accessing up to $60 million in debtor-in-possession financing.
Judge Christine Gravelle approved a July 17 bid deadline despite objections from lender Metropolitan Partners Group, ruling that an expedited process was necessary to avoid disrupting operations as approximately 20,000 campers arrive for the summer season, Bloomberg reported. The court also authorized an initial $20 million draw under the financing facility, with approval for the remaining $40 million to be sought later. The financing includes a $120 million roll-up of existing bond debt held by the DIP lenders. Simad Holdings owns and operates 30 overnight summer camps, primarily located along the east coast. The camps have either recently opened or are beginning their summer sessions and collectively expect to host around 20,000 campers this season. Some camps charge tuition of up to $16,750 for a full summer program. The company entered Chapter 11 after seeking additional liquidity to continue operating its camp network during the restructuring process.
The DIP financing is being provided by lenders that hold Simad’s Israeli bonds, including investment adviser Klirmark Capital, whose funding is intended to preserve operations while the sale process proceeds. Metropolitan Partners Group unsuccessfully challenged the accelerated sale timeline, arguing bidders needed more time to prepare offers.