Edgemere Dallas’ bankruptcy case should be dismissed, landlord says

By Sarah Lizee

Olympia, Wash., Aug. 15 – Northwest Senior Housing Corp., which does business as Edgemere Dallas, should have its Chapter 11 bankruptcy cases dismissed, landlord Intercity Investment Properties, Inc. said in court documents filed Friday with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, Edgemere has been in a continued dispute with its landlord. Simultaneously with the bankruptcy filing, Edgemere filed a lawsuit against Intercity Investments and its agent, Kong Capital, alleging claims for breach of contract, promissory fraud, tortious interference with business and contractual obligations, civil conspiracy, and equitable subordination.

The landlord said Friday that the debtors “continue to engage in a campaign of deception before this court and Edgemere’s residents by obscuring the facts and creating unrealistic expectations for both.”

Intercity Investment said that no successful outcome can come from the debtor’s recently filed Chapter 11 plan and disclosure statement with Lifespace Communities, Inc. as sponsor.

“The plan gives residents of the Edgemere a false sense of security that their deposits are ‘safe,’ based upon the flawed premise that the lease can be modified by the plan. It cannot,” the landlord said.

The landlord also noted that the debtor proposed to pay unsecured creditors nothing while allowing Lifespace to both retain its equity interest and be paid $20 million in deferred sponsor fees through the proposed assumption of a management agreement.

“The grim reality is that the debtors are hemorrhaging cash, squandering resources and lack sufficient funds to operate in Chapter 11 under their current DIP loan until the entry of a final order in the adversary proceeding,” the landlord said.

“Despite this reality, the debtors continue spending inordinate amounts of time, money, and judicial resources prosecuting frivolous litigation claims against the landlord and pushing a fallacious narrative regarding their prospects for reorganizing. This charade must end now.”

The Dallas-based luxury senior living community filed Chapter 11 bankruptcy on April 14 under case number 22-30659.

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