Clare Oaks wins approval for extension of DIP loan sale milestones

By Jim Witters

Wilmington, Del., June 21 - Clare Oaks won court approval of a fourth amendment to its debtor-in-possession loan agreement, according to a June 21 filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

As previously reported, the company reached an agreement with the DIP facility lender to extend its internal sale milestones for no more than two weeks to accommodate negotiations with the prospective stalking horse bidders and other constituents.

The extended milestones include the following:

• A two-week extension to June 22 of the date by which the company must receive and deliver an asset purchase agreement from the prospective buyer;

• A nine-day extension to July 26 of the deadline for a court hearing on the bid procedures motion;

• A one-week extension to Aug. 21 of the deadline for conducting an auction; and

• A one-week extension to Aug. 23 of the deadline for a sale hearing.

Clare Oaks said that the sale milestone extension will not extend the maturity date of the DIP loan.

The company said it agreed to pay a $15,000 amendment fee.

Bartlett, Ill.-based Clare Oaks operates a continuing-care retirement community. The company filed for bankruptcy on Dec. 5, 2011 under Chapter 11 case number 11-48903.

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