Edgemere, the senior living community that filed for bankruptcy in April, will be allowed to tap up to $10.1 million in financing to help cover operating expenses as it reorganizes under court supervision.
U.S. bankruptcy judge Michelle Larson earlier this month approved the request from the operators of the community with more than 400 residents consisting of 304 independent-living units, 113 assisted living units, and 87 nursing beds in the 8500 block of Thackery Street, court documents show.
There were a number of objections to the financing, including from the official committee of unsecured creditors representing families seeking refunds of entrance fees, who said in court documents that it was concerned the $10.1 million wouldn’t be enough to cover operating and other administrative expenses.
The judge also ruled that Edgemere doesn’t need to make immediate rent payments to its landlord, InterCity Investments, but has to set aside those funds in an escrow account to show it has the cash, the Dallas Morning News reported. Intercity holds a 55-year ground lease on the property the facility was built on.
Edgemere lost $30 million in 2021 in part because of declining occupancy rates, and the bankruptcy filing estimated Edgemere to have between 1,000 and 5,000 creditors, and its assets and liabilities are both estimated to be between $100 million and $500 million, according to the bankruptcy filing.
Read more from the Dallas Morning News here.