Texas-based retirement home goes bankrupt to sell assets

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  • North Texas seniors’ residences report $65 million in debt
  • Prime bidder offers $44.25 million to acquire assets

(Reuters) – Texas-based senior living center Christian Care Centers Inc filed for bankruptcy on Monday with a principal offer for its assets from Boncrest Resource Group Inc, a nonprofit that provides care services health and assisted living.

Christian Care Centers, a nonprofit, faith-based organization established in 1947, filed its Chapter 11 case with the U.S. Bankruptcy Court for the Northern District of Texas. Christian Care Centers has reported about $65 million in debt and is one of many senior care or skilled nursing facilities to seek bankruptcy protection since the onslaught of the COVID-19 pandemic. .

Boncrest offered $44.25 million for the assets.

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“We are grateful to have found a buyer who shares our long-term commitment and values,” CEO Sabrina Porter said in a statement Monday.

Christian Care Centers has three campuses in North Texas that offer a total of 412 independent living units, 152 assisted living units, 77 memory care units and 119 skilled nursing units, according to a written statement from the director of restructuring Mark Shapiro.

The company was already facing financial difficulties in 2018 and 2019, according to Shapiro. The pandemic exacerbated the problem as labor costs rose and residency rates fell, leaving the company unable to service its debt.

Christian Care Centers has about $85,000 in cash, according to court documents. He received a $4.5 million loan under the Paycheck Protection Program in May 2020, which was canceled in June 2021.

Lawyers for Husch Blackwell Christian Care Centers will appear before U.S. Bankruptcy Judge Stacey Jernigan on Wednesday seeking help to keep operations going during the Chapter 11 case. Boncrest said he will honor all contracts residents once it resumes facilities and operations.

Nursing homes have been hit hard by the pandemic, suffering staffing shortages and COVID-related resident deaths. Florida-based Gulf Coast Health Care LLC filed for bankruptcy in October and Iowa-based QHC Facilities LLC in January. Residences for the elderly also experienced problems. 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, US 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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Maria Chutchian

Thomson Reuters

Maria Chutchian reports on corporate bankruptcies and restructurings. She can be reached at [email protected]

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