Many senior care facilities are still feeling the sting of the recession. Unable to settle its debt accrued during the recession, River Terrace Estates, a continuing care retirement community (CCRC) in Bluffton, Indiana, filed for Chapter 11 bankruptcy protection on July 22, 2014.
George Mesires, who leads FaegreBD's Chicago finance and restructuring team, was quoted in Senior Housing News on how the bankruptcy filing will impact bondholders. Mesires noted that the sale of the facility could result in bondholders recovering a paltry 53 percent in a bond exchange. "This case is unlike many of the recent CCRC bankruptcy cases because of the high number of retail bondholders," Mesires said. "Without a clear mouthpiece for the bondholders, it may be difficult to gain consensus."