Texas-based senior living facility enters bankruptcy to sell assets
(Reuters) - A Texas-based senior living center, Christian Care Centers Inc, filed for bankruptcy on Monday with a lead bid for its assets from Boncrest Resource Group Inc, a non-profit that provides healthcare and assisted living services.
Christian Care Centers, a faith-based non-profit, which was established in 1947, filed its Chapter 11 case in the U.S. Bankruptcy Court for the Northern District of Texas. Christian Care Centers reported about $65 million in debt and is one of several senior living or skilled nursing facilities to seek bankruptcy protection since the onslaught of the COVID-19 pandemic.
Boncrest has offered $44.25 million for the assets.
“We are grateful to have found a buyer who shares our long-term commitment and values,” CEO Sabrina Porter said in a statement on Monday.
Christian Care Centers has three campuses in North Texas that provide a combined 412 independent living units, 152 assisted living units, 77 memory care units and 119 skilled nursing units, according to a written declaration from chief restructuring officer Mark Shapiro.
The company was already facing financial strain in 2018 and 2019, according to Shapiro. The pandemic exacerbated the issue as labor costs increased and residency rates declined, leaving the company unable to make debt payments.
Christian Care Centers has about $85,000 in cash on hand, according to court papers. It received a $4.5 million loan under the Paycheck Protection Program in May 2020, which was forgiven in June 2021.
Lawyers for Christian Care Centers at Husch Blackwell will appear before U.S. Bankruptcy Judge Stacey Jernigan on Wednesday requesting relief to keep operations running during the Chapter 11 case. Boncrest has said it will honor all resident contracts once it takes over the facilities and operations.
Nursing homes have been hard hit by the pandemic, suffering staff shortages and COVID-related resident deaths. Florida-based Gulf Coast Health Care LLC filed for bankruptcy protection in October and Iowa-based QHC Facilities LLC filed in January. Senior living facilities have seen some trouble too. Texas-based Northwest Senior Housing Corp, known as Edgemere, filed for Chapter 11 in April with nearly $112 million in debt.
The case is In re Christian Care Centers Inc, U.S. Bankruptcy Court, Northern District of Texas, No. 22-80000.
For Christian Care Centers: Buffey Klein, Lauren Hayes and Amber Fly of Husch Blackwell
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