Nashville Senior Care cancels auction, seeks sale to Nexus Capital

By Sarah Lizee

Olympia, Wash., Oct. 24 – Nashville Senior Care, LLC canceled an auction for its assets and is now seeking approval of a private sale to Nexus Capital XIII LLC, according to a motion filed Monday with the U.S. Bankruptcy Court for Middle District of Tennessee.

As background, the debtors are comprised of five senior living communities and one Medicare-certified home health agency affiliated with the Trousdale Foundation, which is the sole member or equity holder of each of the debtors.

The company had entered into a stalking horse agreement with Cascasis LLC to purchase substantially all of its operating entities’ assets for $41 million.

The company said that prior to the auction, which was scheduled for Oct. 24, the debtors received a preemptive offer from Nexus for the same assets being acquired by Cascasis, but with economic terms materially superior to those provided by the stalking horse bidder.

Nexus offered a purchase price of $57.5 million plus assumed liabilities, but the offer was contingent on the debtors canceling the overbid process and auction and immediately moving forward with the private sale.

Nashville Senior Care said Nexus’ offer was at or above its expectations of value should the debtors have conducted an auction.

Nexus’ offer is accompanied by a deposit of $7.25 million (12.6% of the cash portion of the purchase price), which will be increased to $8 million upon entry of the sale order.

Nexus plans to continue to operate the communities as a going concern.

The debtor said that bond trustee UMB Bank, NA supports the sale.

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

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