Erickson emerges from Chapter 11 bankruptcy, completes sale to private firm

Share this article:

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.

Share this article:

More in News

Expert says providers often wrongly threatened by PEPPER reports

Instead of fearing further scrutiny by federal authorities, providers should embrace the opportunity to get feedback in the form of PEPPER reports, legal experts said Monday at the LeadingAge annual meeting in Nashville.

Healthcare reform already driving diverse, dynamic long-term care models, LeadingAge leaders say

Healthcare reform already driving diverse, dynamic long-term care ...

One way to gauge the effects is healthcare reform is by looking at ongoing changes to the continuing care retirement community model, LeadingAge officials said Monday at the association's annual ...

Federal court: Nursing home can be sued for firing hairdresser who can ...

Is the ability to transport residents in their wheelchairs an essential function of a nursing home hairdresser? A federal appeals court says it's a valid question and is allowing a hairdresser to sue a facility that fired her.