Christian Care Communities files Chapter 11 bankruptcy to pursue sale

By Sarah Lizee

Olympia, Wash., May 23 – Christian Care Communities & Services filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas on Monday after identifying a buyer for its three senior living communities, according to a press release.

Boncrest Resource Group is lined up to assume operation of the three communities, and plans to honor all resident contracts, protect residents' deposits and entrance fees, and, with the company’s existing employees, continue providing care and services.

Christian Care said the acquisition will resolve the financial uncertainty that the Covid-19 pandemic exacerbated.

The transaction and process will allow proceeds from the sale to be distributed to creditors. Christian Care said it is prepared to consider other offers, if any, that might be in the best interest of residents, employees and other stakeholders.

The sale is expected to be completed in August or September through the court-approved process.

The company is seeking court approval of a $5.85 million 12% debtor-in-possession bond due Nov. 30 with UMB Bank, NA as trustee. The company is seeking interim access to $2.5 million of the financing.

Christian Care is also seeking approval to use the cash collateral of the DIP lender.

In its petition, the company listed $50 million to $100 million in both assets and liabilities.

No unsecured creditors were listed with claims of $1 million or more.

The company’s prepetition debt includes $30.77 million retirement facility revenue bonds issued in 2014 and $26.21 million retirement facility revenue bonds issued in 2016. As of the petition date, the outstanding principal amount under the bonds was $50.17 million, and the accrued interest under the bonds was $3.11 million. UMB Bank is bond trustee.

The Texas-based non-profit faith-based organization operates three communities for seniors in Mesquite, Fort Worth and Allen. The Chapter 11 case number is 22-80000.

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