Preferred Care, a nursing home operator that filed for Chapter 11 bankruptcy protection last year, is seeking another extension for the exclusive period in which it can file and confirm a plan of reorganization.
The motion, filed Monday, is the fourth such request entered this year, and would extend the exclusivity period by 91 days if approved.
“Effectuating the Debtors’ plan to transfer the operations of the Final Facilities in the coming weeks and months — while also ensuring continued resident care at those Facilities — has required and will continue to require a tremendous amount of attention from the Debtors’ personnel and representatives, including counsel,” the motion read. “As a result, the Debtors and their professionals have not yet formulated a final plan of reorganization and are still weighing their options regarding the filing of a plan or other course of action once their Facilities have been successfully transferred to new operators.”
Thirty-three Preferred Care skilled nursing facilities declared bankruptcy in November 2017, with 12 of the SNFs in New Mexico and 21 in Kentucky.
The U.S. Bankruptcy Court for the Northern District of Texas approved the transfer of the Kentucky buildings to a new operator, pursuant to certain transition agreements. The debtors have finalized that transfer, according to the Monday motion.
The Wall Street Journal reported in July that Sapphire Care Group would take over the facilities, but subsequent documents raised questions about when the transfer would occur. It is not clear from the Nov. 19 motion who the new operators in Kentucky might be.
When reached by phone, Preferred Care general counsel Robert Riek referred Skilled Nursing News to the company’s bankruptcy counsel, Stephen McCartin at the firm of Foley & Lardner. An e-mail message from SNN to McCartin was not returned as of press time.
The current exclusivity filing period ends on Dec. 10, which is when a hearing on the issue is scheduled; if the fourth extension is granted, the new deadline would be March 11, 2019.
Written by Maggie Flynn