No more objections filed against CCRC Illinois bondholders’ bankruptcy plan – Business Daily News
Additional objections have been filed against a Chapter 11 reorganization plan proposed by majority bondholders for the Clare Oaks Senior Living retirement community based in Barlett, Illinois.
In addition to an objection that was filed on June 11 by operator and debtor Clare Oaks, four other objections have now been filed against the bondholders’ plan, including one from the Centers for Medicare & Medicaid Services.
On May 15, CCRC bondholders, troubled west coast debt investor Lapis Advisors and Boston-based Amundi Pioneer Management proposed a bankruptcy reorganization plan that would delay reimbursement of fees. entry of residents until a new resident has occupied the vacated unit and provided Clare Oaks with a new deposit. The plan also proposes to hire a new professional management company to operate the facility. Clare Oaks filed for bankruptcy in 2019, the second time the company has taken such a step.
CMS filed an objection to the bondholder plan on June 12, saying the plan “does not provide any information regarding the intentions of bondholders regarding the Medicare provider agreement and Medicare’s continued involvement. The agency expressed concern that all residents of CPAB’s assisted living, memory and nursing units would be forced to relocate if the plan was approved.
The American administrator; the Sisters of Saint Joseph of the Third Order of Saint Francis, who founded the CCRC and of which 22 residents of Clare Oaks are members; as well as the Clare Oaks Unsecured Creditors Committee, have also filed objections to the plan. In addition, the Unsecured Creditors Committee has also proposed its own bankruptcy reorganization plan for Clare Oaks, which honors the debtor’s obligations to its residents and families by assuming all residency agreements without changes and paying all Refunds of entrance fees due to current and former full residents.
Bondholders say their plan “reposition Clare Oaks on a solid course of financial stability and future growth,” but Clare Oaks CEO Gigi Walker said McKnight Seniors Residence that she fears that the growth plan proposed by bondholders may be unrealistic, especially in the midst of a pandemic.
“This could really set a huge precedent for the industry, and we really want to care about the needs of our seniors, some of whom have been with us since we opened in 2008,” said Waler.
A hearing on both plans is scheduled to be held in U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, on July 14.