Nashville Senior Care committee objects to proposed DIP financing

By Sarah Lizee

Olympia, Wash., Sept. 14 – Nashville Senior Care, LLC’s motion for final approval of a $5.35 million debtor-in-possession facility via UMB Bank, NA drew an objection from the official committee of unsecured creditors, according to documents filed Wednesday with the U.S. Bankruptcy Court for Middle District of Tennessee.

The committee said its main concern is with the minimal new-money funding under the DIP facility.

The group is also concerned that the case is being run for the sole benefit of UMB Bank and bondholders, and not for the estates or creditors.

“The DIP lenders and trustee’s intent to fund the absolute minimum to liquidate the trustee’s prepetition collateral should not be countenanced by the court, especially when the DIP lender and trustee seek to rapidly strip the debtors’ estates of valuable rights, claims and assets,” the committee said in the objection.

The group said its concerns are further compounded by the lack of any post-sale cash or exit financing that would support a viable exit from the cases.

The U.S. trustee overseeing the case also objected to the financing based mainly on the significant estate waivers and concessions of third-party rights that are not represented, as previously reported.

The Hermitage, Tenn.-based senior care company filed bankruptcy on Aug. 14 under Chapter 11 case number 23-02924.

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