Trustees representing bondholders have filed a claim against developer Alex Sapir, seeking to hold him personally responsible for $14 million he allegedly promised to inject into the restructuring of debt linked to the collapse of Sapir Corp. The petition was submitted to an Israeli court through filings with the Tel Aviv Stock Exchange, and it also demands unspecified damages and legal fees, according to documents from October. The move comes after the company’s insolvency filing in October 2025, which cited an inability to meet bond payments or cover operating expenses.

Sapir Corp had been working to restructure $155 million in debt across two bond series as deadlines approached. In the summer before the insolvency filing, Sapir agreed to use his own capital to delay maturity, but he missed a July 1 payment, triggering a default. The company’s financial struggles led to the sale of its NoMo SoHo hotel in Manhattan, which was acquired by Dan Hotels for $121 million in February, a nearly 40 percent discount from the $200 million Sapir paid for the property in 2015. The sale occurred as part of a court-supervised auction aimed at reducing debt.

Read Also: Man gets prison term for Harlem deed theft

Bondholders argue that Sapir committed to the $14 million injection to prevent default but later backed out as repayment deadlines neared.

Beyond Sapir Corp, Sapir remains at the helm of his family’s 35-year-old business, Sapir Organization, which recently revealed plans for a 62-story condo tower in Tbilisi, Georgia. The project, developed in partnership with the Trump Organization and local developers, represents Sapir’s first major overseas venture since the insolvency filing. Meanwhile, the company continues to explore the sale of a 1.5-acre Miami development site, zoned for 741 residential units, with an estimated value of $50 million.