Summer in the Catskills just got a lot messier for some very pricey campers. Simad Holdings, which owns a network of summer camps across the Northeast, filed for Chapter 11 protection on June 4, 2026, after reporting massive debts that could put bookings and deposits at risk for families. The move hits a Catskills sleepaway camp that charges $16,750 for a full season and leaves seasonal staff and vendors wondering what happens to their paychecks and contracts as the company tries to reorganize.
Bankruptcy filing details
The company filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of New Jersey on June 4, 2026, according to the court docket. Inforuptcy shows the case was assigned to Chief Judge Christine M. Gravelle and lists the petition date and case number that will guide the proceedings.
Debt load and immediate fallout
Bloomberg reported that Simad listed more than $500 million in liabilities on its petition and that the company’s properties hosted roughly 19,900 campers in 2025. The outlet also noted that the business’s principals, Michael and David Shabsels, filed personal bankruptcy, a twist that adds another layer of complexity to the group’s already tangled finances.
What the portfolio looks like
A March valuation prepared for Simad by appraisal firm Leitner Berman put the combined camp portfolio’s market value at about $466.6 million as of December 31, 2025, and identified a 30-property portfolio made up of 22 overnight camps and eight day camps across New York, Pennsylvania, New Jersey, Maine and other states. Leitner Berman lists individual properties, including Lokanda, Waukeela and Blue Star, that now form the package heading into bankruptcy court.
The Catskills camp that costs $16,750
One of the better-known properties, Camp Lokanda in Glen Spey, lists its 2026 full-summer tuition at $16,750 on the camp’s posted rates and shows a $4,000 deposit that was refundable through April 1. Camp Lokanda notes deposit and payment deadlines on its rates page. Whether parents’ payments end up refundable or turn into unsecured claims will hinge on upcoming bankruptcy orders and the debtor’s available cash.
What Chapter 11 means for families and staff
Filing under Chapter 11 triggers an automatic stay that pauses most collection efforts and typically allows a company to keep operating as a “debtor in possession” while it seeks debtor in possession financing and crafts a reorganization plan. The U.S. Courts notes that creditors, including families with prepaid tuition or contractors owed money, must file proofs of claim to be considered for any payout under a confirmed plan, and that secured lenders and DIP financers often land at the front of the payment line in Chapter 11 cases.
The court docket also shows the debtors have the exclusive right to file a reorganization plan through October 2, 2026, a date creditors and families will be watching for proposals to honor deposits or for potential sales of individual camps. Inforuptcy lists the initial filings. In many Chapter 11 cases, the first few weeks bring “first day” motions that ask the court for permission to pay payroll, keep critical vendors whole and secure financing so the business can keep the lights on while the case moves forward.
