Bondholders Approve Sapir Corp’s $44M Debt Restructuring

Sapir Corp’s Israeli bondholders have decided that it’s a good idea to give the development firm a few more years to pay off its debt, given current economic uncertainty caused by coronavirus.

In a Monday vote, investors in Sapir Corp.’s $44 million bond series overwhelmingly approved of the company’s proposal to push back the maturity date from 2022 to 2025. In exchange, the Alex Sapir-led company agreed to an immediate prepayment of about $8 million and a higher interest rate.

Among the bondholders that participated in the vote, over 97 percent approved the proposal, well above the 75-percent majority required.

“Today’s successful vote makes clear that our bondholders believe in the company’s long-term ability to maximize value and realize the full potential of our holdings,” Sapir Corp. CEO Amir Richulsky said in a statement.

Richulsky also emphasized the firm’s positive outlook for its two major properties: a hotel in Manhattan and condo development in Miami.

“Despite obvious hurdles caused by the pandemic,” the NoMo Soho hotel “is an incredible piece of real estate and we feel confident our business plan will prove successful,” he said. The Arte Surfside luxury condo project “has received strong feedback from the market and is truly the most unique asset in Miami Beach. We are proud of its quality and value in the growing luxury market.”

In the early days of the pandemic, occupancy at the NoMo Soho tumbled to just 1.9 percent, Sapir Corp’s financial disclosure show. But that was typical of New York hotels which remained open at the time and which did not benefit from government contracts to house front-line workers.

At the Arte Surfside, only three units of the 16 units have so far been sold. They went to Alex Sapir’s mother, his sister and his business partner. The developer is now planning to rent out units at the 12-story project with the expectation that some renters will become buyers.

Sapir Corp. is also seeking to sell two development sites in Miami and Manhattan, and the broader Sapir Organization owns other properties like 260 and 261 Madison Avenue in Midtown Manhattan.

Contact Kevin Sun at ks@therealdeal.com