Life Care St. Johns granted approval to transfer $1.76 million funds

By Lisa Kerner

Charlotte, N.C., Aug. 30 - Life Care St. Johns, Inc. was granted approval from the U.S. Bankruptcy Court for the Middle District of Florida to transfer $1.76 million from its operating reserve account to a segregated reserve account, according to an attorney familiar with the case.

The approval permits escrow agent Wells Fargo Bank, NA to transfer the funds.

As previously reported, the company requested the transfer to "support and maintain the same level of care and services" at its senior living facility.

To ensure proper care of the 247 residents at its Glenmoor facility at the World Golf Village, the company needs the funds held in the operating reserve account, a prior motion stated.

Life Care St. Johns has embarked on a 10- to 12-month "consensual path" that includes analysis and adjustment of the business model and the pursuit of a sale or affiliation or the restructuring of its major debt.

Life Care St. Johns, a St. Augustine, Fla.-based not-for-profit, filed for bankruptcy on July 3. Its Chapter 11 case number is 13-04158.

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