Friendship Village of Schaumburg seeks $3 million DIP loan

By Sarah Lizee

Olympia, Wash., July 25 – Evangelical Retirement Homes of Greater Chicago, Inc., which does business as Friendship Village of Schaumburg, is seeking approval of a $3 million debtor-in-possession facility, according to a motion filed with the U.S. Bankruptcy Court for the Northern District of Illinois.

The debtor said it would be forced to cease operations without the financing.

Friendship Senior Options, NFP, an Illinois not-for-profit, is the proposed DIP lender.

The financing has certain milestones, including filing a plan by Sept. 6, holding an auction for the debtor’s assets by Nov. 1, receiving confirmation of the plan by Dec. 6, and the plan going effective by Jan. 31.

Interest is 5% per annum.

The loan is set to mature on March 31, 2024.

The Schaumburg, Ill.-based retirement community filed bankruptcy on June 9 under Chapter 11 case number 23-07541.

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