Judas sent men to spy out the camp, and they reported to him: The camp refers to Timothy’s army camp. Judas sent scouts to spy on it from a distance. They did not enter the camp itself. In some languages these two clauses may be expressed as “Judas sent some men to spy on the place where Timothy and his men had set up their tents, and they returned and reported to him.”

What follows in this verse and the next one may be reported as direct speech (so Revised Standard Version) or as indirect speech (so Good News Bible).

All the Gentiles around us have gathered to him; it is a very large force. They also have hired Arabs to help them, and they are encamped across the stream, ready to come and fight against you: If this is translated as indirect discourse, Good News Bible may be used as a model. The model below uses direct speech.

And Judas went to meet them may be rendered “So Judas led his soldiers out to fight them.”

An alternative model for verses 38-39 is:

• 38 Judas sent out some scouts to spy on the enemy camp [or, on the place where Timothy and his men had set up their tents], and they came back and told him [or, reported to him]: “All the Gentiles in this whole region have joined Timothy. He has a very large army. 39 He has even hired some Arabs to help him. Their camp is just across the stream, and they are ready to attack us.” So Judas led his soldiers out to fight them.

Quoted with permission from Bullard, Roger A. and Hatton, Howard A. A Handbook on 1-2 Maccabees. (UBS Helps for Translators). New York: UBS, 2011. For this and other handbooks for translators see here.