Capital belonging to investment firm 26 Capital, led by Jason Ader, files for bankruptcy following the unsuccessful Okada Manila agreement.

In a dramatic turn of events, Jason Ader's special purpose acquisition company, 26 Capital Acquisition Corp, has filed for Chapter 11 bankruptcy. The filing, made in Delaware on July 11, 2025, marks a significant downfall for the company, a downfall that can be traced back to the failure of its planned acquisition of Okada Manila in early 2023.

The acquisition, worth $2.5 billion, would have secured a Nasdaq listing for the Philippine resort, one of Asia's largest integrated resorts. However, the deal fell apart, leading to a bitter breakup with Okada Manila's operators who accused 26 Capital of material breaches and fraudulent conduct.

The bankruptcy proceedings include unpaid debts to various parties, with claims ranging from six to seven figures. Among the unpaid debts are obligations to public relations agencies, translators, accountants, tax authorities, law firms, and other parties.

Schulte Roth & Zabel, a New York law firm, pursued nearly $2 million in unpaid fees from 26 Capital. American Express has sued Jason Ader for $370,000 in unpaid credit card charges. Jason Ader's mother is also suing him regarding a $13 million mortgage tied to his deceased father's estate in New York.

The bankruptcy filing does not indicate any loss for public shareholders. However, the 26 Capital bankruptcy is more than just a failed merger. It highlights how quickly a financial vehicle can unravel amid litigation, unpaid debts, and rising scrutiny from creditors and regulators.

A bankruptcy judge removed Jason Ader from the 26 Capital case due to potential conflicts of interest and transparency issues. The US Trustee now has control of the case, and the bankruptcy filing lists Jason Ader's firms, SpringOwl Asset Management and 26 Capital Holdings, as creditors for a combined $14 million.

Jason Ader claims he took great care to protect public shareholders and returned over $275 million in trust proceeds after the Okada deal collapsed. However, the unpaid debts and the ongoing legal battles paint a different picture.

The downfall of 26 Capital serves as a cautionary tale for the financial industry, underscoring the importance of transparency, good governance, and prudent financial management. As the bankruptcy proceedings unfold, the industry will be closely watching the developments to learn valuable lessons and avoid similar pitfalls.

Capital belonging to investment firm 26 Capital, led by Jason Ader, files for bankruptcy following the unsuccessful Okada Manila agreement.