Country Place’s Chapter 11 bankruptcy case to be dismissed

By Sarah Lizee

Olympia, Wash., Dec. 6 – CP Holdings LLC, which does business as Country Place Senior Living, will have its Chapter 11 case dismissed, according to an initial order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the debtors initiated the Chapter 11 cases to maximize value for their stakeholders by selling their assets and equity interests in their operating subsidiaries free and clear of liens, claims and encumbrances.

The sale, which the court approved by order dated Nov. 2, will preserve the going concern value of the debtors and their operating subsidiaries.

The purchaser of the debtors’ assets and equity interests is the debtors’ pre-petition secured lender and lender under the post-petition secured financing facility, Tor Asia Credit Master Fund LP. Tor’s purchase price included, among other things, a credit bid of the obligations under the DIP facility, $14.94 million of the pre-petition secured debt, and assumption of certain liabilities.

While the debtors have sufficient funds from the DIP facility to satisfy anticipated administrative expenses, they have no other source of funding to satisfy the claims of the debtors’ creditors, including the substantial deficiency claim owed to Tor.

With the sale closing scheduled for the end of November, the debtors, in consultation with Tor, began to explore options to bring the Chapter 11 cases to a conclusion.

“Ultimately, the debtors determined that dismissal is the most expeditious and cost-effective mechanism to wind down the debtors’ affairs,” the company said in its motion.

“In reaching this conclusion, the debtors determined that dismissal will not negatively impact creditors, as compared to a Chapter 11 plan or conversion to Chapter 7, because there are no remaining unencumbered assets of any value available for distribution to unsecured creditors and insufficient funds to support the administrative costs of pursuing anything but a prompt exit from bankruptcy.”

Dallas-based Country Place develops and operates rural-based aged-care assisted living and memory care facilities. The company filed bankruptcy on June 20 under Chapter 11 case number 21-10950.

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