A bankruptcy court has approved a reorganization plan for Dallas-based skilled nursing and senior living provider Senior Care Centers LLC.
The U.S. Bankruptcy Court for the Northern District of Texas handed down the ruling in the Chapter 11 reorganization plan last week. It allows the company to be restructured into a new company owned by unsecured creditors, the Wall Street Journal reported.
The company, which owns more than 100 SNFs and senior living communities in Texas and Louisiana, stated the restructuring allows it to continue caring for patients and residents without interruption.
“This plan allows us to address certain financial issues while continuing to provide the critical care and support on which our residents rely while we work to transition certain communities to new operators,” COO Michael Beal said in a statement.
“All of the actions we are announcing today have one clear and overriding goal – to ensure every single one of our patients and residents continue to receive safe and comfortable care now and in the future,” he added.
Senior Care Centers executives announced the bankruptcy filing last December after numerous fiscal challenges that stemmed largely from cuts in reimbursement and payments from private insurers. The company described the move as the best way to “address the company’s debt and costly leases” and improve financial resources.
Senior Care Centers also plans to continue paying its 11,000 employees and vendors during the Chapter 11 process.
“After careful analysis, we determined that the protections afforded by the Chapter 11 process are the best way to address the Company’s debt and costly leases while allowing us to continue to provide all the top-level care and support our residents deserve,” Chief Restructuring Officer Kevin O’Halloran said in a statement.
“All of our patients, residents and their families can rest assured they remain our number one priority,” he added.
