Helped large memory care provider successfully navigate complex Chapter 11
A Dallas-based designer, developer, owner and operator of 41 stand-alone memory care communities in nine states filed for Chapter 11 protection in order to preserve value and jobs and to protect the residents in the memory care facilities. The company’s struggles resulted from a surge in construction of similar facilities which created a supply-demand imbalance and increased competition for residents at lower rental rates. This market dynamic negatively impacted occupancy rates, revenue and cash flow making it difficult for the company to remain current on certain debt and lease obligations. The company faced over 30 lawsuits on account of its alleged guaranty liabilities.