In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides insight into the bankruptcy case of Inverness Village.
Summary
Inverness Village, a West Tulsa retirement community, has filed for Chapter 11 bankruptcy as part of a strategic move to facilitate its sale to Tulsa Hills Community Inc., a subsidiary of Covenant Living Communities and Services. The filing reveals that Inverness has assets totaling $62.3 million against debts of $174.9 million. The decision to file for bankruptcy was made by the board of directors after considering all strategic alternatives to maximize the value of the Inverness Facility. The community, which opened in 2003, offers a range of care levels for its residents, including independent living, assisted living, and skilled nursing and memory-care facilities.
- Adam Stein-Sapir, a portfolio manager at Pioneer Funding Group, notes that the bankruptcy was due to intense competition, lack of financial support from Asbury Communities, and unsustainable bond obligations.
- Inverness Village lists Asbury Communities Inc. as the holder of the largest unsecured claim at $37.6 million, with other unsecured claims from residents ranging between $434,250 and $578,645.
- The facility spans approximately 190 acres and includes a variety of housing options and care facilities for its residents.
Q&A
What are the implications of Inverness Village filing for Chapter 11 bankruptcy?
Chapter 11 bankruptcy allows Inverness Village to reorganize its debts and continue operating while it plans to sell its assets to Tulsa Hills Community Inc. This process aims to maximize the value of the sale and address the financial challenges faced by the retirement community. For more information on bankruptcy proceedings, click here.
How does the bankruptcy affect the residents of Inverness Village who are listed as creditors?
Residents listed as creditors with unsecured claims may face uncertainty regarding the recovery of their claims. The bankruptcy process will determine the order and extent to which creditors, including residents, are paid. For those considering selling their bankruptcy claims, this guide may be helpful.
What led to the financial difficulties of Inverness Village resulting in bankruptcy?
According to Adam Stein-Sapir, the financial difficulties arose from stiff competition for staff and residents, the absence of continued financial support from Asbury Communities, and the burden of over $60 million in bond obligations. These factors combined to make the financial situation unsustainable, prompting the bankruptcy filing. For creditors in similar situations, understanding the next steps can be crucial, and information can be found here.
