Eagle Senior Living files for Chapter 11

March 2022  |  DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

March 2022 Issue


Amid a pandemic that has drastically increased labour costs, Michigan-based nursing home chain Eagle Senior Living has filed for Chapter 11 bankruptcy protection so that it may complete a comprehensive financial reorganisation to achieve a more balanced and sustainable capital structure.

The company is confident that the proven legal process of Chapter 11 will allow it to strengthen its financial structure and provide flexibility to make necessary capital improvements to refresh and enhance its communities to better serve residents both now and in the future.

Importantly, the Chapter 11 process will allow Eagle Senior Living communities to operate uninterrupted as the company works to achieve its financial goals. With the support of a steering committee of its senior bondholders as outlined in a restructuring support agreement (RSA), Eagle Senior Living intends to emerge from the Chapter 11 process with a bolstered financial structure, allowing it to make additional investments in its communities.

Furthermore, the RSA contains agreed-upon terms for a prearranged plan of reorganisation that, if approved by the required additional creditors and the US Bankruptcy Court, would significantly reduce debt and provide needed financial flexibility.

Eagle Senior Living’s parent company American Eagle Lifecare Corporation and management company Greenbrier Senior Living are not included in the Chapter 11 filing. During the process, Greenbrier Senior Living will continue to manage all of the communities.

“The Chapter 11 process brings us closer to securing a stronger financial future for Eagle Senior Living and its communities,” said Todd Topliff, president of American Eagle Delaware Holdings, parent company of Eagle Senior Living. “We have been working diligently with our bondholders to navigate the impacts of the COVID-19 pandemic, strengthen our long-term financial health and best position Eagle Senior Living to continue providing high-quality care and amenities to all residents.”

Established in 2018, Eagle Senior Living was founded with the recognition that the human spirit is elevated through meaningful relationships with others. With 15 communities across seven states, the company’s goal is to enrich the lives of older adults across the nation, offering independent living, assisted living and memory care.

“We are incredibly grateful for our employees and their determination through the pandemic and industrywide challenges, and we are confident that our residents will continue to feel cared for and engaged at all of our communities,” added Mr Topliff.

Eagle Senior Living has also decided to pursue an orderly sale of its Vista Lake community through the Chapter 11 process, as well as filing certain motions with the US Bankruptcy Court that will allow it to meet go-forward commitments to all stakeholder groups, including employee wages and benefit programmes. These motions are typical in Chapter 11 proceedings and remain subject to court approval.

Eagle Senior Living is being represented during the Chapter 11 process by Polsinelli as legal counsel and FTI Consulting as restructuring and financial adviser.

Mr Topliff concluded: “We strongly believe that, through the Chapter 11 process, we will not only strengthen our financial structure – but also improve the communities we serve, making them the places where seniors can do more of what they love for years to come.”

© Financier Worldwide


BY

Fraser Tennant


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