A Mesquite-based senior care company has filed for Chapter 11 bankruptcy protection in the Northern District of Texas citing $65 million in debt – a majority of it municipal bond debt – and less than $500,000 in assets.
Christian Care Centers, which operates in Allen, Fort Worth and Mesquite, has hired Husch Blackwell corporate bankruptcy partner Buffey Klein of Dallas and Husch Blackwell litigation senior associate Lauren Hayes to lead the debtor’s side restructuring.
Christian Care is the latest in a handful of assisted living operations in Texas that have filed for bankruptcy during the past year because they are highly leveraged and have seen a substantial decline in revenue because of the Covid-19 pandemic.
Last month, Northwest Senior Housing Corp., also known as Edgemere, filed for bankruptcy in the Northern District citing $112 million in debt.
The debtor and creditors in Christian Care identified Texas Benevolent Holdings as a potential buyer in public statements. Baker Donelson is advising TBH, which states it would turn to Atlanta-headquartered non-profit Boncrest Resource Group as the operator.
Munsch Hardt shareholder Deborah Perry and firm associate Julian Vasek are representing creditor UMB Bank. Munck Wilson principal Aaron Gottlieb is advising creditor Quality Care Rehab. Linebarger Goggan partner Laurie Spindler is representing Dallas County, Tarrant County and the City of Allen.
U.S. Bankruptcy Judge Stacey Jernigan has set the second day restructuring hearing for June 10, with creditors getting their day in court on June 29.