December 11, 2017, Alex Spanko, Skilled Nursing News - Four more facilities owned by Senior Care Group filed for Chapter 11 bankruptcy protection last week, bringing the total up to 10. The Tampa, Fla.-based non-profit — which owns 13 skilled nursing, home health care, and rehab providers across the Southeast — initially entered Chapter 11 back in July, along with six of its facilities in Florida.
The most recent filing applies to four additional facilities in Oklahoma, with each LLC operating a single building: SCG Durant Four Seasons, LLC, and SCG Oak Ridge, LLC in Durant; SCG Madill Red River, LLC in Madill; and SGC Lake Country, LLC in Marietta.
The action, filed in United States Bankruptcy Court for the Middle District of Florida on December 8, also includes SCG Red River Management, which owns a single building and serves as the management company for the four operating buildings.
In all, the entities owe $9 million in back loans and $14.6 million in other unsecured claims, the according to the filing. That $9 million loan directly led to the bankruptcy claim for the four properties: Loanholder LQC, which acquired the debt from Bank of America, had recently moved to put the properties in receivership.
These properties specifically serve low-income communities, Senior Care Group said in the filing, with residents afflicted with “severe cognitive deficiencies, mental illness, and challenging behavioral issues.” In all, 302 full- and part-time employees worked at the sites at the time of the filing.
In the original July bankruptcy filing, Senior Care Group placed the blame on financial strains dating back to the Great Recession, along with changing payment models.
“Certain obligations were restructured during this time and other secured creditors obtained deficiency judgments, which had the combined effect of saddling Senior Care with significant legacy debts,” the July 31 filing reads. “Changes in Medicaid and Medicare adversely impacted Senior Care’s cash flow at a time it was struggling to deal with the legacy debts. Reductions in reimbursement rates at times when the costs of complying with increased government regulations resulted in an inability to pay certain debts as they came due.”
A representative from Senior Care Group’s law firm did not respond to a request for comment as of press time.