Edgemere to Restructure to Build a Sustainable Financial Future

Community to Operate Uninterrupted, Working to Serve the Best Interests of Current and Future Residents

Community Files Lawsuit Against Landlord and its Agents

DALLAS, April 14, 2022 /PRNewswire/ -- Edgemere Dallas ("Edgemere" or "the community") today announced it has taken decisive action to best position the community for the future and protect the interests of its stakeholders by initiating a voluntary and comprehensive restructuring through Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas.

Edgemere remains fully operational throughout the Chapter 11 process, continuing to provide high-quality care and services to its residents and their families and fulfilling obligations to its other stakeholders. Edgemere is negotiating with its financial stakeholders on a restructuring plan that will provide the community with a healthier, more sustainable financial future. To help fund and protect its operations during the Chapter 11 process, Edgemere is seeking court approval for debtor-in-possession ("DIP") financing provided by UMB Bank, as indenture trustee. Edgemere is confident that it will gain long-term financial flexibility and stability by reaching a permanent resolution with its financial stakeholders through this process.

Simultaneously with the bankruptcy filing, Edgemere also filed a lawsuit against its landlord, Intercity Investments Inc., and its agent, Kong Capital, alleging claims for, among other things, breach of contract, promissory fraud, tortious interference with business and contractual obligations, civil conspiracy, and equitable subordination. The community believes that pursuing the lawsuit is in the best interest of Edgemere, its residents, the bondholders, and all stakeholders, and it intends to pursue the lawsuit vigorously.

"Edgemere has entered into this process with support of its bondholders and Lifespace Communities; and we remain steadfast in our commitment to our residents as we work through this process in a manner that will allow current and future residents to enjoy all that Edgemere has to offer for many years to come," said Jesse Jantzen, President & CEO of Lifespace Communities, Inc. "The only outstanding piece is resolution with the landlord and its agents, and we have filed a lawsuit against them alleging claims for their actions over the last year. Edgemere has faced various challenges—from managing the impact of the COVID-19 pandemic to responding to Winter Storm Uri in February of 2021. Like previous challenges we have overcome, we will tackle these issues head-on and remain committed to identifying a long-term financial solution. As always, the interests of our current and future residents are our main priority."

Edgemere has filed certain motions with the U.S. Bankruptcy Court that will allow it to meet go-forward commitments to all stakeholder groups through the Chapter 11 process, including employee wages and benefit programs. These motions are typical in Chapter 11 proceedings and remain subject to Court approval.

Edgemere's owner, Lifespace Communities, has not filed for Chapter 11 and will continue to own and operate Edgemere throughout the Chapter 11 process.  

Edgemere is represented in this matter by Polsinelli as legal counsel and FTI Consulting as restructuring advisor.

For more information about Edgemere's Chapter 11 case, please visit http://www.kccllc.net/Edgemere, email [email protected], or call 310-751-2669 for U.S. calls or 866-967-0269 for international calls.

About Edgemere Dallas
Edgemere opened its doors in 2001, and immediately set a new standard for luxury senior living retirement communities in North Texas. It was the first Life Care community to open in Dallas and, for almost a generation now, it has offered residents an unparalleled set of benefits.

Edgemere's drive to deliver a top-tier experience is reflective of the vision for excellence in senior living. It's a vision shared across all 14 members of the Lifespace Communities® family. The mission remains focused on one thing — celebrating the lives of seniors in everything the community does. This simple notion has led Lifespace and its multistate system of senior living communities to experience decades of success and financial stability and, even more importantly, earn the trust of thousands of team members, residents, and their families.

Additionally, Edgemere's status as a 501(c)(3) not-for-profit organization means all revenues are reinvested into the community. This not only fuels the development of better services, amenities, and opportunities for our residents, but also ensures that in the event of a financial hardship that's no fault of their own, residents won't be asked to leave the community.

About Lifespace Communities
Lifespace Communities, Inc., based in Dallas, Texas and West Des Moines, Iowa, is a not-for-profit organization proudly serving older adults for more than 40 years. Founded in 1976, Lifespace Communities has grown to own and operate 14 continuing care retirement communities in seven states, serving more than 4,700 residents and employing more than 3,700 team members. For more information about Lifespace and its communities, visit LifespaceCommunities.com.

SOURCE Edgemere Dallas