Erickson emerges from Chapter 11 bankruptcy, completes sale to private firm
The sale of Erickson Retirement Communities LLC, which manages 19 full-service campus-style communities, to Redwood Capital Investments, has been completed, the senior living provider disclosed Monday. The company also has emerged from Chapter 11 bankruptcy, it said.
“The sale of Erickson to Redwood and confirmation of our Plan of Reorganization concludes a very difficult and extremely complicated period in Erickson's history,” said Guy Sansone, who served as chief restructuring officer, in a statement.
Erickson, which gained a strong reputation over the years for its deluxe communities and refundable deposits, filed for bankruptcy protection last October. The filing was a way for the company to restructure its debt and reorganize its core management and real estate businesses into separate but commonly owned legal and financial entities. John Erickson is the founder of Erickson Retirement Communities.
The company took a financial hit when the economic downturn prevented potential residents from selling their homes and moving into the communities. Redwood is a private investment firm. Jim Davis controls it.