Ohio CCRC Files for Chapter 11, Second Bankruptcy for Franciscan Sisters of Chicago

After missing its most recent debt-service payments and failing to reach an agreement with bondholders, an Ohio continuing care retirement community (CCRC) filed for Chapter 11 bankruptcy protection in late November, marking the second bankruptcy filing in the course of a month for the Franciscan Sisters of Chicago.

Stepping in to assist the St. Mary of the Woods community with a loan to help the CCRC maintain daily operations through the process, The Franciscan Sisters of Chicago, which manages the property, offered a $4.5 million loan.

For the property’s assisted living units, rents range from $3,477 to $4,881, skilled nursing care patient up to $294, according to court documents. The company also charges monthly service fees of up to $3,619.

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It is the second bankruptcy filing for the Franciscan Sisters of Chicago, which filed for Chapter 11 on a Chicago luxury senior living facility on November 14, citing the sluggish economy and recession for its default on bond debt of $229 million.

St. Mary of the Woods said it would seek a buyer for the Avon, Ohio community, which includes a 23-acre campus and 158 CCRC units.

“During the past few years, CCRCs, including SMOW, have suffered substantial declines in sales and occupancy, and have faced various obstacles in their construction and development as a result of the struggling economy, the weakened credit environment, limited access to capital, and declining real estate values, among other things,” said Judy Amiano, president and chief executive officer of Franciscan Sisters of Chicago and St. Mary of the Woods, according to bankruptcy documents.

The community cited debts of about $48 million, which outweighed its $36 million in assets as of June.

Previously, the facility attempted to restructure its 2004 bond debt of $34.3 million, set to mature between 2014 and 2034.

Written by Elizabeth Ecker