Texas-based senior housing center files for bankruptcy to sell assets

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  • North Texas senior facility reports $65 million in debt
  • Leading bidder offers $44.25 million to acquire assets

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

Christian Care Centers, a faith-based nonprofit organization established in 1947, filed its Chapter 11 case in the US Bankruptcy Court for the Northern District of Texas. Christian Care Centers reported about $65 million in debt and is one of several nursing/skilled nursing facilities seeking bankruptcy protection since the onslaught of the COVID-19 pandemic.

Boncrest has 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 combined 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 stress 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 debt.

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

Attorneys for Christian Care Centers at Husch Blackwell will appear before U.S. Bankruptcy Judge Stacey Jernigan on Wednesday seeking relief to keep operations running during the Chapter 11 case. Boncrest has said it will honor all resident contracts once once he takes over the 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 filed for bankruptcy in January. Facilities for the elderly have also had some problems. Texas-based Northwest Senior Housing Corp, known as Edgemere, filed for Chapter 11 in April with almost $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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Mary Chutchian

Thomson Reuters

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

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