Will it cover the debts? Cimed sold its summer camps for $368 million
Cimed has sold 23 summer camps in the US for $368 million, exceeding their book value by $24 million. The proceeds are expected to assist in repaying debts to institutional investors.
Will the sale of Cimed's core assets cover the company's collapse? The US summer camp company, which borrowed 620 million shekels from institutional investors, has sold its US assets for $368 million. This follows a sale process held in the US between July 27 and July 31 for the 23 summer camps owned by Cimed.
On Tuesday, a request for approval of the transactions was submitted to the court in New Jersey. The company's assets were recorded at $345 million, meaning the assets were sold for $24 million more than their book value.
Cimed, which operates summer camps in the US, raised 620 million shekels from institutional investors in Israel just last December. Five months later, the company reported that the controlling shareholders had withdrawn about $34 million from its accounts and those of its subsidiaries, resulting in a default on payments to bondholders.
For holders of Cimed's Series A bonds, the sale is expected to yield $312 million, and with previous sales, the total proceeds are expected to reach $336 million. The transactions are still subject to approval by the US bankruptcy court and the completion of sale agreements.
In addition, the company emphasizes that the published amounts are gross figures, excluding transaction expenses, and that the distribution of funds among creditors will be determined later by court order. While full repayment is not yet guaranteed, the situation has improved, and it appears possible to repay the full debt.
In June 2026, Cimed's bond series was called for immediate repayment after the BVI company that incorporated the firm reported two loans taken by the controlling shareholders, brothers David and Michael Shabsels, totaling about $33 million (approximately 100 million shekels). These loans were backed by collateral and liens on group assets. Prior to the discovery of these additional loans, Cimed's debt stood at $270 million: $210 million to bondholders and $60 million to banks.
The company's collapse highlights a major failure by the authors of the prospectus and the gatekeepers who were responsible for verifying Cimed's financial status and corporate structure.
