Persevering with care retirement group (CCRC) operator Lutheran Life Communities is submitting for Chapter 11 chapter because it seeks to reorganize its operations and monetary holdings.
The Arlington Heights, Illinois-based nonprofit’s board adopted a chapter decision on Feb. 3 because it continues to hunt options for “addressing the monetary wants” of the group and its associates whereas additionally stopping interruptions to take care of its residents.
The filings additionally notice the group is making an attempt to keep away from a receiver being appointed within the course of.
The nonprofit supplier has three CCRCs and one expert nursing facility in Illinois and Indiana in its portfolio, in keeping with its web site.
As has been the case with different current senior residing chapter filings, Lutheran Life CEO Sloan Bentley mentioned the group bumped into monetary difficulties stemming from the Covid-19 pandemic. Particularly, the operator cited the escalating value of wages, scarcity of staff, stagnant Medicaid and Medicare reimbursement charges and different pressures as prime challenges impacting operations and resulting in its monetary shortfall.
Bentley is the previous CEO of Lifespace Communities, which she left in 2019.
Courtroom filings notice Lutheran Life Communities has between one and 49 collectors and between $10 million and $50 million in estimated property and between $1 million and $10 million in liabilities.
The group’s largest present creditor is Choose Rehabilitation with a complete of $808,084 excellent.
Lutheran Life Communities has retained the providers of regulation agency Squire Patton Boggs within the chapter submitting.
As of August 2024, senior housing made up almost half of the full Chapter 11 bankruptcies amongst well being care corporations. Lutheran Life Communities is following the identical path seen by Christian Horizons, which filed for Chapter 11 final July. On the time, CEO Kate Bertram advised Senior Housing Information the monetary difficulties have been spurred on by the pandemic, ensuing within the nonprofit exacerbating its use of money.
