The Clare Seeks Bankruptcy Protection
November 16, 2011
as its financial adviser, and Redwood Capital Investments is lined up to be the DIP lender for an aggregate amount of $12.0 million. The search is on for a stalking horse bidder, but the price isn’t going to be very high with more than $62 million of refundable entrance fees as a liability and just 33% of the 248 of the independent living units occupied. At least the 54 assisted living units have a 52% occupancy rate and the health center is at 91%. The original debt outstanding was $229 million, or $685,000 per unit/bed, and the various tranches of bonds have traded between 15 cents and 35 cents on the dollar in recent months. The goal is to receive a letter of intent from a stalking horse bidder no later than January 10, 2012, with the entire process wrapped up by mid-May. While bondholders may be lucky to get 10% of par value in the process, the real question will be how those refundable entrance fees are handled, and valued, by a bidder.