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.
Hired as CRO to manage the working group of professionals assisting the Company in the Chapter 11 process
Negotiated with and provided information to the Company’s lenders, key creditors and investors
Facilitated the transfer of management and ownership of memory care communities via foreclosure or sale in a manner that ensured continuity of care for the residents
Acted as Corporate representative in all bankruptcy hearings
Uninterrupted care for ~1,400 residents in 41 memory care facilities
Preservation of employment ~1,150 full-time and ~250 part-time professionals and support staff
Services & Roles
Chief Restructuring Officer
*Some engagements may have been performed by team prior to joining Harney Partners.