Clare Oaks Senior Living in Bartlett emerges from bankruptcy
Clare Oaks Senior Living in Bartlett has emerged from bankruptcy proceedings, which earlier this year threatened the finances of the community's residents, equipped with a new board of directors and management firm.
When a proposed settlement to the previously contentious negotiations was first announced in late summer, then-CEO Gigi Walker said she was confident bondholders were abandoning steps that would have threatened residents' deposits by selling the community to a third party and making everyone there a renter.
The 12-year-old continuing care retirement community will now be managed by ER Senior Management IL, LLC, according to new board of directors Chairwoman Julie Boggess.
She said Clare Oaks officially emerged from bankruptcy on Nov. 6.
"The goal of this rigorous process was to reduce the burden of unrealistic long-term debt, an all-too-common phenomenon among (continuing care retirement communities) opened earlier this century, and to infuse fresh capital for a series of improvements," Boggess said in a statement. "With this process, Clare Oaks' bondholders reduced Clare Oaks' debt by $40 million, to $46 million from $86 million."
Lead bondholders Lapis Advisors and Amundi Pioneer have committed $5 million for capital improvements to be completed in 2021.
Clare Oaks, which retains its not-for-profit status, has hired ER Senior Management to oversee all operations, including the capital improvements, Boggess said.
"We are confident that the leadership of ER Senior Management co-founders Chris Coates and Brian Dowd will ensure a smooth transition as we work with our new on-site management to maintain and improve Clare Oaks' history of gracious, secure living," she added.
The new executive director is Tim Lynch, who previously oversaw the firm's continuing care retirement community in Amarillo, Texas.