Erickson Retirement Communities, LLC filed for Chapter 11 bankruptcy protection on Monday night. As part of its filing in the U.S. Bankruptcy Court for the Northern District of Texas, Erickson agreed to sell its assets to Redwood Capital, LLC. Erickson listed estimated assets and liabilities over $1 billion and stated in part of its filing that “The senior housing market has been hindered over the past twelve (12) months by a weakened credit environment, including limited access to capital, falling real estate values, and significantly reduced liquidity due to realized and unrealized losses on investments.”
The bankruptcy filing seeks to restructure Erickson’s debt and separate the operating division to enhance the sale of its operations to Redwood Capital, LLC. The undisclosed offer from Redwood is subject to court approval and be subject to a competitive bidding process.
Erickson, founded in 1983 and headquartered in Maryland, has more than 23,000 people living in its facilities and employs more than 12,000.
