Edgemere gets OK to amend DIP facility; adjusts plan, sale timeline

By Sarah Lizee

Olympia, Wash., Jan. 18 – Northwest Senior Housing Corp., which does business as Edgemere Dallas, received court approval to obtain $5.4 million of additional debtor-in-possession financing, according to an amended final order filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas.

The order allows the facility’s amount to be lifted to $15.5 million and its maturity to be extended through April 14.

The amendment changes the interest rate to 12%. The DIP lender will also receive a 2% commitment fee. Interest was previously 10%.

If a default occurs, interest will jump to 14%.

Some of the DIP facility’s case milestones have also changed, including pushing the plan confirmation deadline to Feb. 28 and the effective date to April 28.

Bond trustee UMB Bank, NA is the lender.

The amendment also extended the use of cash collateral through March 30.

The official committee of unsecured creditors had objected to the motion, as previously reported.

The group said the budget for payments of committee professional fees is too small, being $445,408 for the extended five-month DIP period, or an average of $89,081.60 per month. According to Tuesday’s amended order, those amounts haven’t changed.

Plan, sale timeline changes

The company also received an order amending its plan and sale deadlines.

Under the amended schedule, the deadline to submit competing bids was moved to 5 p.m. ET on Feb. 3 from 5 p.m. ET on Jan. 13, the auction was moved to Feb. 7 from Jan. 17, the plan and sale objection deadline was moved to Feb. 14 from Jan. 20, and the confirmation and sale hearing date was moved to Feb. 21 from Jan. 26.

MOR

Edgemere also filed its monthly operating report for the November period.

The company reported a $2.56 million net loss on $2.56 million of gross income for November, compared to a $3.82 million loss on $2.62 million gross income for October.

The cash balance at the end of November was $2.88 million, up from $2.24 million at the end of October.

The Dallas-based luxury senior living community filed Chapter 11 bankruptcy on April 14, 2022 under case number 22-30659.

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