Dallas/Fort Worth area-based Christian Care Community & Services filed Monday for Chapter 11 bankruptcy protection in the Northern District of Texas and identified a potential buyer. The faith-based organization operates three life plan communities in Mesquite, Fort Worth and Allen, Texas.
CCC&S’ lead petition notes between 1,000 and 5,000 creditors, estimated assets between $50 million and $100 and estimated liabilities between $50 million and $100 million, Bankruptcy Company News reported.
The company disclosed Monday that Atlanta-based Boncrest Resource Group is lined up to assume operation of the three communities. Boncrest is a nonprofit charitable organization, and plans to honor all resident contracts, protect residents’ deposits and entrance fees and retain the company’s existing employees, according to a press release. North Texas Benevolent Holdings is the purchaser of the assets of the three Christian Care Centers communities. North Texas Benevolent Holdings will serve as a stalking horse baseline bid under Section 363 of the proposed bankruptcy agreement, according to Bankruptcy Company News.
Under the stalking horse advance pricing agreement, the aggregate purchase price for the purchased assets will be $44.25 million, Bankruptcy Company News reported. This includes “the assumption of certain assumed liabilities and a credit to the buyer of $750,000,” according to the media outlet.
“We are grateful to have found a buyer who shares our long-term commitment and values. This sale, when approved by the bankruptcy court, will keep our communities stable and sustainable for years to come,” Christian Care Communities & Services President and CEO Sabrina Porter said in a statement.
CCC&S said the acquisition will resolve the financial uncertainty for the organization, which the COVID-19 pandemic exacerbated. As part of the process, CCC&S has secured debtor-in-possession financing to fund the communities through the bankruptcy cases.
The transaction and process will allow proceeds from the sale to be distributed to creditors while positioning the new company to continue the same level of care and services. The process also requires that CCC&S be prepared to consider other offers that might be in the best interest of residents, employees and other stakeholders.
“Christian Care Communities & Services has a proud mission — to serve this region and its seniors — and a long history of doing just that. We are honored to take up that mantle by continuing to deliver care and services to residents,” Boncrest Resource Group Director and CEO Tom Baker said in a statement. “These are vital communities providing effective, essential and valuable services to seniors and their families. We’re committed to ensuring that they continue to do so.”
