Dallas-based Senior Care Centers LLC will be restructured into a new company controlled by unsecured creditors, under a court-approved Chapter 11 plan.
The firm, which operates more than 100 communities across Louisiana and Texas, has faced numerous fiscal challenges. They stemmed largely from cuts in reimbursement and payments from private insurers, according to the company. The result was “burdensome” debt and “ballooning” rent payments.
The U.S. Bankruptcy Court for the Northern District of Texas has indicated that it will approve the new company structure.
“This plan allows us to address certain financial issues while continuing to provide the critical care and support on which our residents rely while we work to transition certain communities to new operators,” Chief Operating Officer Michael Beal said when the bankruptcy originally was announced in December.
In addition to skilled nursing and short-term care buildings, the company offered memory care at 24 locations, assisted living at 10 stand-alone or combination sites, and independent living at two continuing care retirement communities, according to its website.
The firm had planned to keep paying employees and vendors during the Chapter 11 process.
“All of the actions we are announcing today have one clear and overriding goal — to ensure every single one of our patients and residents continue to receive safe and comfortable care now and in the future,” Beal said in December.