Why reforms in the Israeli bond market didn’t stop the Shabselses
The co-chair of Herrick's Israel and Real Estate Hospitality Practices, Yariv Ben-Ari, was quoted in The Real Deal discussing how New York City developers have utilized the Israeli bond market for real estate investments.
The article noted that in in 2025, Simad Holdings raised approximately $200 million from Israeli bond investors by offering debt backed by a portfolio of summer camps. Just six months later, the company defaulted on its bond payments.
The article highlighted that "in a speedy bankruptcy process in New Jersey that lasted about the length of the sleepaway-camp season, Simad sold 22 of its camps through an auction and four through private sales, generating $368 million."
The article explained that "even before the resolution, Simad’s collapse did not slow the market for bond offerings in Israel."
"Over the last month, I would say I probably fielded calls for almost a dozen sponsors who are interested in raising bond money for their projects," said Yariv.
"If somebody wants to hide something that’s not otherwise available in a public record, or to be placed on a public record and commit fraud, that’s not something you can necessarily always protect against or identify in a deal," he added.
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