A holding company behind an assisted living provider with about 50 small communities in Texas and Alabama has filed for Chapter 11 bankruptcy.
The company, CP Holdings LLC, owns or partially owns 50 subsidiaries operating 24-suite assisted living communities in rural markets, 10 of which operate facilities under the Country Place Senior Living brand, according to the June 20 filing.
Also included in the bankruptcy filing is Pacrim, a six-employee CP Holdings subsidiary that aids with strategy, operations and finances as well as accounting and development.
CP Holdings’ current liabilities total just over $83 million, with the majority owed to Hong Kong-based lender Tor Asia Credit Master Fund LP.
The bankruptcy filing comes after CP had defaulted on multiple debts over the course of several years, according to Law360, which reported on the case Monday.
“During the term of the credit agreement, the loan parties repeatedly defaulted on their payment and covenant obligations,” Marc Weinsweig, independent manager of CP Holdings and Pacrim, wrote in the bankruptcy’s declaration.
CP Holdings has proposed selling its assets to Tor under a stalking horse sale, the story from Law360 noted. A stalking horse sale is an initial bid on the assets of a bankrupt entity that effectively establishes a low-end bidding floor that ensures bidders cannot underbid the purchase price.
“The debtors and Tor negotiated an asset purchase agreement pursuant to which Tor will credit bid all of its secured claims arising under the DIP Loan and $14,935,003 of its secured claims arising under the credit agreement as consideration for substantially all of the assets of debtors CP Holdings and Pacrim,” the Chapter 11 declaration reads.
The sale is subject to higher and better offers through a marketing process conducted by the investment banker Anderson LeNeave & Co, which was retained for the transaction. The firm will market CP Holdings’ and Pacrim’s assets and membership interests in each of their direct subsidiaries, according to the filing.
Another recent senior living bankruptcy involved a stalking horse bid. Henry Ford Village, a large continuing care retirement community in Michigan, agreed on a $69 million stalking horse bid. The CCRC ultimately was acquired for $76.3 million by a Sage Healthcare affiliate.
A representative for CP Holdings did not immediately respond to a request for additional comment Tuesday.
The post Company Behind Country Place Senior Living Files for Chapter 11 Bankruptcy appeared first on Senior Housing News.