Edgemere Dallas files bankruptcy, files lawsuit against landlord

By Sarah Lizee

Olympia, Wash., April 14 – Northwest Senior Housing Corp., which does business as Edgemere Dallas, filed Chapter 11 bankruptcy on Thursday in the U.S. Bankruptcy Court for the Northern District of Texas to facilitate a restructuring, according to a press release.

Edgemere said it will remain fully operational throughout the Chapter 11 process, continuing to provide care and services to its residents and fulfilling obligations to its other stakeholders.

The company said it is negotiating with its financial stakeholders on a restructuring plan.

To help fund and protect its operations during the Chapter 11 process, Edgemere is seeking court approval for debtor-in-possession financing provided by UMB Bank, NA as indenture trustee.

Simultaneously with the bankruptcy filing, Edgemere also filed a lawsuit against its landlord, Intercity Investments Inc., 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 community believes that pursuing the lawsuit is in the best interest of Edgemere, its residents, the bondholders, and all stakeholders, and it intends to pursue the lawsuit vigorously,” the company said in the release.

“Edgemere has entered into this process with support of its bondholders and Lifespace Communities; and we remain steadfast in our commitment to our residents as we work through this process in a manner that will allow current and future residents to enjoy all that Edgemere has to offer for many years to come,” said Jesse Jantzen, president and chief executive officer of Lifespace Communities, the company’s owner.

“Edgemere has faced various challenges – from managing the impact of the Covid-19 pandemic to responding to winter storm Uri in February of 2021.”

Edgemere has filed motions with the bankruptcy court that will allow it to meet go-forward commitments to all stakeholder groups through the Chapter 11 process, including employee wages and benefit programs. Lifespace Communities has not filed for Chapter 11 and will continue to own and operate Edgemere throughout the Chapter 11 process.

Edgemere is represented in this matter by Polsinelli as legal counsel and FTI Consulting as restructuring adviser.

The company said it has $100 million to $500 million in assets and owes about $112 million, consisting of bond debt and unsecured obligations.

Its largest unsecured creditors are two of its residents, holding entrance fee refund claims of $1.34 million and $1.25 million. No other unsecured creditors were listed with claims of $1 million or more.

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

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