January 19, 2022

George Mesires Provides Insight on Pre-negotiated Bankruptcy Cases in the Senior Living Industry

McKnights Senior Living reported in a recent article that a Wilmington, DE-based senior living company has initiated a voluntary Chapter 11 process in a move the company hopes will strengthen its financial structure and provide flexibility to make necessary capital improvements. Finance and restructuring partner and co-leader of the senior living and care team George Mesires spoke with the publication and provided insight on pre-negotiated bankruptcy cases in the industry.

“Although never ideal, in limited instances, a bankruptcy of a senior living and care community may be ultimately beneficial for the community, its residents and constituents,” Mesires told the publication. “A pre-negotiated bankruptcy case, where a broad group of constituents carefully negotiate the terms of a restructuring before a filing, are typically much smoother than a free-fall Chapter 11, which can significantly destroy value and cause uncertainty among the constituents.”

Mesires also noted that, in a pre-negotiated bankruptcy case, creditors often voluntarily agree to write off debt to ease the burden on the community and to provide liquidity for working capital or capital expenditure needs.

“Pre-negotiated cases can signal to the market that a bankruptcy case is widely supported and will be minimally disruptive to the community and its most important constituency, the residents,” he said.

Full Article

Related Legal Services

Related Industries

The Faegre Baker Daniels website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Baker Daniels' cookies information for more details.