We know everything about bankruptcy
26/04/2024
Friday
26 April 
1970 The accident at the Chernobyl nuclear power plant
1970 The accident at the Chernobyl nuclear power plant
1970 France annexed the Republic of Geneva
1970 France annexed the Republic of Geneva
1970 The 13-year-old Ludwig van Beethoven was appointed a musician of the court orchestra in Bonn
1970 The 13-year-old Ludwig van Beethoven was appointed a musician of the court orchestra in Bonn
RETIREMENT COMMUNITIES OF THE US ARE GOING BANKRUPT
When applying to the court, the CCRC officials cited a number of factors that put financial pressure on the organization, including Hurricane Harvey, which hit the United States in 2017 and the Covid-19 pandemic that began in 2020. Both facts had an impact on the community's ability to attract new clients for campus living, as well as generate income to pay off the debt obligations and cover expenses.
The total amount of debt obligations exceeded $ 140 million. What is more, the organization announced a default on some debt obligations.
Lifelong Caring Communities are also known as ‘life planning communities’ in the United States. They represent a special type of living arrangement for older people who require continuing care. They are communities, in which some citizens live independently, while others have special needs (primarily in qualified medical care) and which can often be located in the same storey building or adjacent cottages, low-rise buildings. Admission to the CCRC requires both medical and financial guarantees, since service in such campuses is not cheap.
For example, the Buckingham CCRC operates a campus that includes more than 300 places where senior citizens live on their own, as well as more than 200 rooms in which retirees and nurses in need of constant medical care live. The campus was built in the affluent area of Houston (River Oaks) in 2005. Until 2019, it was part of the financial portfolio of the Senior Quality Lifestyle Corporation (SQLC). Buckingham is currently operated by Greystone Management Services, which also provides marketing services for the community.
It is known that at the time of filing an application with the court, Buckingham had an outstanding debt of $ 140.34 million and $ 16.3 million more as interest on the loan.
In total, according to the released data, the company's assets are $ 198.2 million, while the liabilities reached $ 345.1 million, including $ 130.4 million in reimbursement of registration fees.
According to experts, organizations like Buckingham have proven their economic resilience during the pandemic. Recently, the Fitch agency published a report, which showed the outlined improvement in consumer demand in this sector. However, some communities were still forced to file for bankruptcy in order to get the opportunity to restructure the debts through the court. For example, in mid-June, a similar application was filed by the Long Island CCRC, the outstanding bond debt of which was $ 199 million.
