Erickson Retirement's Illinois properties get going-concern warnings

By Lisa Kerner

Charlotte, N.C., July 29 - PriceWaterhouseCoopers LLP said it could not express an opinion on the financial statements for the year ended Dec. 31, 2008 of Monarch Landing, Inc. and Sedgebrook, Inc., both operated by Erickson Retirement Communities, LLC.

The auditor also raised doubts about the companies' abilities to operate as going concerns.

Monarch Landing has $178.745 million of series 2007A and variable-rate series 2007B revenue bonds issued through the Illinois Finance Authority outstanding.

Sedgebrook has $137.145 million of series 2007A and variable-rate series 2007B revenue bonds, also issued through the Illinois Finance Authority, outstanding.

Earlier in the month, Monarch said it may have difficulty obtaining needed working capital because its sources of funding, Naperville Campus, LLC and Erickson Retirement, are negotiating covenant waivers and loan extensions with their lenders.

As previously reported, Monarch was supposed to have provided financial statements to Fifth Third Bank by April 30 but requested a waiver from the bank.

Sedgebrook asked Sovereign Bank to waive the requirement that it provide audited financial statements.

Baltimore-based Erickson Retirement develops full-service retirement communities. Monarch Landing is located in Naperville, Ill., and Sedgebrook is located in Lincolnshire, Ill.

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