Ohio Nursing Home with $15M in Debt Placed in Receivership

The Eden Springs nursing home in Green Springs, Ohio, was placed in receivership after lender CIBC filed foreclosure actions against several limited liability corporations connected to the facility, The Toledo Blade reported.

The complex features a long-term acute care hospital, skilled nursing facilities, a long-term acute care hospital, an assisted living facility, and a pharmacy, as well as independent senior housing units, the publication noted. It was placed in receivership on January 18 in Sandusky County Common Pleas Court after the foreclosure actions were filed.

CIBC loaned the facility’s owners $16 million in August 2016, according to court documents cited by The Blade. Soon after the ownership group defaulted, and though the owners paid what they owed in 2017, other defaults followed. The group still owes CIBC approximately $15 million.

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Eden Springs, which has two locations in Green Springs, overdrafted more than $600,000 on accounts for medical and pharmacy supplies, equipment rentals, and payroll, according to CIBC’s court filings. In addition, the owners stopped paying bills for utilities and waste services, court documents cited by The Blade allege.

Eden Springs administrator Rhonda Wolpert said in a statement to The Blade that the receiver’s manager “has moved aggressively to stabilize the facilities operations.” Eden Springs is trying to pay past-due bills, and the company’s practices are being reviewed, The Blade reported.

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