Who are the main players in Edgemere’s bankruptcy?
Bankruptcy cases bring together a myriad of parties, often with conflicting interests in how complex financial issues are resolved. Here are the key players in Edgemere’s bankruptcy.
Northwest Senior Housing Corp., doing business as Edgemere, signed a 55-year ground lease in 1999 with Intercity Investments and opened in 2001. The continuing care facility is owned by Lifespace Communities, a non-profit organization based in Dallas. and West Des Moines which was founded in 1977 and operates 17 communities in seven states.
Based in Dallas Long Distance Investment Properties, a property management company in business for over 40 years, owns the land on which Edgemere was built and leases it to the facility. Its portfolio is a mix of retail, office, mixed-use and multi-family properties, primarily in Texas. Examples of his other properties include The Shoppes on Lovers, Miracle Mile Mall and Preston Pointe Center. Edgemere and Intercity had an acrimonious relationship. Intercity is upset that Edgemere cannot pay its rents. Edgemere sued Intercity in April, claiming the owner deliberately tried to ruin its reputation and business in order to regain the land.
Continuing care retirement communities are capital-intensive projects that typically require bonds to fund construction. In total, Edgemere issued four municipal bond sales. Bondholders are led by UMB Bank. Bondholders have priority over who gets paid when a company goes bankrupt because their claims are secured.
The committee of unsecured creditors
In bankruptcy cases, there is a committee that represents the interests of creditors with unsecured claims. In the case of Edgemere, the committee is mostly made up of families of former residents who are owed millions in entrance fee refunds. They have to queue behind bondholders to get paid and may not recoup all of their losses. Edgemere said he intended to honor entry fee refunds.
Michelle Larson, US bankruptcy judge
Michelle Larson became a federal bankruptcy judge for the Northern District of Texas in July 2020. She graduated from Loyola University Law School in 1996 and was a valedictorian of Nicholls State University in 1992. She previously practiced law at New York-based Weil, Gotshal & Manges LLP, as well as two Dallas firms, Andrews Kurth Kenyon LLP and Carrington Coleman.