National Benevolent files for bankruptcy protection
National Benevolent Association filed Tuesday for Ch. 11 bankruptcy protection in San Antonio, TX. The St. Louis-based nursing home association's executives and board had spent eight months attempting to work with banks and bondholders to agree on cost-cutting measures and keep the restructuring out of court, according to Rev. David Mindel, chairman of the NBA board.
"Sadly, however, it became clear to us that the best interests of NBA and the people it serves differed dramatically from those of our creditors," Mindel said in a statement.
President Cindy Dougherty said the creditors wanted the company to increase entrance fees, monthly maintenance and rental fees, as well as reduce resident services and freeze or cut wages. Dougherty said these were short-term fixes "inconsistent" with its mission, and the association instead needs to restructure its debt.
National Benevolent has about $214 million in outstanding bond debt. National Benevolent operates more than 90 nursing homes, senior facilities and children's homes nationwide.