A continuing care retirement / life plan community on Long Island filed for bankruptcy protection last month for the third time in nine years in the Bankruptcy Court for the Eastern District of New York.
The Harborside in Port Washington, NY, formerly called Amsterdam of Harborside, which opened in 2010, previously filed for bankruptcy in 2014 and again in 2021.
The organization “blamed the latest proceeding on lower occupancy numbers, which has reduced needed revenues to pay the facility’s bills, on the stigma associated with its earlier bankruptcy filings and the COVID-19 pandemic,” The Island 360 reported.
According to court documents, the CCRC estimated assets ranging from $100 million to $500 million. Among its outstanding debt, The Harborside reportedly owes a total of approximately $29 million in entrance fee refunds to 30 residents and their families. Proceeds from a proposed sale to stalking horse bidder New England Life Plan Communities are expected to cover the refunds, according to The Harborside. (A stalking horse bid is an initial bid on the assets of a bankrupt company.)
“We intend to be able to fund all of the entrance-fee refunds that are due to either residents who have moved out [of the Harborside] or to family members of deceased residents,” Larry Bradshaw, president of New England Life Plan Communities, told Newsday on Tuesday.
