Amsterdam of Harborside, Port Washington, PA, filed last week for chapter 11 bankruptcy protection in the Bankruptcy Court for the Eastern District of New York.
The continuing care retirement community is looking to restructure approximately $200 million in debt.
This is the second bankruptcy for the CCRC, which opened in 2010. According to court records, the organization previously filed for bankruptcy in July 2014. The case was closed in January 2015 with Amsterdam restructuring its debt.
The pandemic “threaten[ed] the debtor’s ability to honor its long-term debt obligations and maintain its operational stability,” President and Chief Operating Officer James Davis stated in court documents.
The Long Island retirement community, he said, relies on residents for revenue, and it was difficult to attract new residents during the pandemic. Required disclosures of the company’s financial condition also hampered efforts to attract residents, according to the operator. Amersterdam then reportedly stopped making debt payments and refunds of resident entrance fees during the pandemic.
“As a result, the 329-unit facility is no longer in compliance with state law, according to documents filed last week in U.S. Bankruptcy Court in Central Islip,” Davis said.
