BARTLETT, Ill., Aug. 21, 2020 /PRNewswire/ -- The majority bondholders and Clare Oaks, the owner and operator of a continuing care retirement community outside of Chicago, announced that they have reached agreement on a consensual restructuring plan in Clare Oaks' Chapter 11 bankruptcy case. Bondholders Lapis Advisers, LP and Amundi Pioneer Asset Management, Inc. spent months negotiating an agreement with Clare Oaks and the Official Committee of Unsecured Creditors that provides residents of the community with financial stability and security for the future, including new physical plant upgrades to the community as well as other benefits. An additional highlight is that the community will be hereafter managed by ER Senior Management, LLC, a professional management company whose staff has a long history of successfully managing continuing care retirement communities.
A hearing was held today in the bankruptcy court for the Northern District of Illinois. Judge Donald Cassling approved the disclosure documents submitted by the bondholders and ruled that the reorganization plan may move forward to a vote of the Clare Oaks residents and other creditors.
The bondholders' plan includes an additional $5 million investment in Clare Oaks to transform a portion of the skilled nursing units to in-demand assisted living units, as well as to address deferred capital improvements and operating liquidity.
"We are very pleased that the Judge allowed our proposed restructuring plan that brings in new management and provides a stronger future for Clare Oaks to move forward to a vote of the creditors," said Kjerstin Hatch of Lapis Advisers. "The true beneficiaries here are the residents living in Clare Oaks and who will continue to receive all the excellent service and benefits of the Clare Oaks' continum of care," said Brian Dowd, Principal and COO of EE Senior Management.
The creditors have until September 21 to vote on the reorganization plan. The bankruptcy court has scheduled September 29, 2020 at 11:00 am (prevailing Central Time) for the hearing to determine whether to confirm the consensual reorganization plan.
SOURCE Clare Oaks Bondholders