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A possible purchaser has bid $83.1 million to amass the biggest life plan group in Illinois after it declared Chapter 11 chapter earlier this yr.
An organization known as IL CCRC LLC has inked an settlement with Friendship Village of Schaumburg in Schaumburg, Illinois, to set a minimal value ground for the acquisition in a course of often known as a “stalking horse” bid, in response to latest court docket paperwork.
A “stalking horse” bid primarily establishes a low-end bid for a bankrupt property previous to an public sale for it. Different bids might be filed previous to the public sale, with the most recent doable deadline listed as Feb. 9, 2024 within the submitting.
The client, IL CCRC LLC, is a restricted legal responsibility firm primarily based out of Delaware, in response to the court docket filings. The corporate has dedicated to speculate as much as $15 million for capital enhancements on the property if it wins the bid.
Friendship Village of Schaumburg had filed for Chapter 11 chapter in June this yr after citing troubles from the Covid pandemic and a decreased variety of move-ins. Earlier reporting from Senior Housing Information states that on the time stakeholders believed the perfect answer can be to “make the most of the chapter course of to run a advertising and sale course of to pick out a possible purchaser.”
The court docket submitting states that at closing, operator Evangelical Retirement Houses of Larger Chicago would obtain $31 million, or 37.3% of the acquisition value. Former residents will obtain $2 million to be paid out collectively on a professional rata foundation, and present residents might be entitled to $51.1 million within the compensation of “all or a portion of their entrance charges” paid over time.
In response to the submitting, Friendship Village of Schaumburg has a complete of 815 items consisting of assisted residing, impartial residing and expert nursing throughout a complete of 70 acres, and if occupancy if full, can home 1,000 residents. It was listed because the No. 24 largest non-profit senior housing group within the nation, in response to the 2023 LeadingAge-Ziegler 200.