Senior Care Centers exit lender pulls out; plan effective date delayed

By Caroline Salls

Pittsburgh, March 4 – Senior Care Centers, LLC said in a status report filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas that its proposed exit financing lender pulled out of the financing agreement.

Senior Care said exit lender MidCap Financial Services originally told the company on Tuesday that the exit facility closing would be delayed because of risks related to the coronavirus outbreak, among other factors. MidCap called the delayed closing decision an “internal credit decision.”

However, later on Tuesday, MidCap said it was unwilling to proceed with the exit facility and that “nothing could be done to remedy MidCap’s concerns.”

As a result, Senior Care said its Chapter 11 plan is unable to take effect.

The company said it is evaluating potential options, including finding a replacement exit facility lender.

Senior Care said it would provide the court with any updates at a hearing scheduled for March 10.

Senior Care Centers is a Dallas-based skilled nursing and long-term care industry leader in Texas and Louisiana. The company filed bankruptcy on Dec. 4, 2018 under Chapter 11 case number 18-33967.

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