Alex Sapir Faces $14M Claim From Israeli Bondholders

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Israeli bondholders are seeking to hold developer Alex Sapir personally liable for debt tied to the collapse of Sapir Corp.

Trustees representing the bondholders petitioned an Israeli court for permission to pursue Sapir for $14 million he allegedly pledged to them as he was trying to restructure the company’s debt, according to filings from the Tel Aviv Stock Exchange. The bondholders are also seeking unspecified damages, as well as legal fees, according to the October filing.

“Alex Sapir declines to comment while this matter is ongoing,” a Sapir spokesperson said.

Sapir Corp, which was controlled by Sapir, filed to enter insolvency proceedings in October 2025, telling a Tel Aviv court it could no longer meet its bond payments or cover basic operating costs. The company had been scrambling to restructure its $155 million in debt across two Israeli bond series as payment deadlines approached.

The summer before the insolvency filing, Sapir agreed to inject $14 million of his own capital to postpone the maturity date, according to the filing. But as the initial July 1 payment approached, Sapir informed bondholders he wouldn’t be able to cover it, triggering a default.

The company had interests in two main assets: the NoMo SoHo hotel in Manhattan and a stake in a Miami development site. Sapir Corp placed the hotel into Chapter 11 and ran a court-supervised auction for the property to help pay down its debt. The hotel sold to Israel-based Dan Hotels for $121 million in February, a nearly 40 percent discount from the $200 million Sapir paid for the property in 2015.

1768 Northeast Second Court in Miami (Google Maps)

Meanwhile, Sapir and his partners are trying to sell the 1.5-acre development site in Miami’s Edgewater neighborhood, which is zoned for 741 residential units and nearly 1.5 million square feet of development, eyeing a price in the $50 million range.

Sapir Corp was one arm of Alex Sapir’s real estate companies. He continues to run his family’s 35-year-old real estate company, Sapir Organization, which recently unveiled plans to develop a 62-story condo tower in Tbilisi, Georgia, along with the Trump Organization and their Georgian partners Archi Group and INVIA.