Clare Oaks files bankruptcy; out-of-court restructuring talks fail

By Caroline Salls

Pittsburgh, Dec. 7 - Clare Oaks filed Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the Northern District of Illinois.

The company said in its bankruptcy petition that it was unable to reach an agreement with an informal finance committee, the trustee for tax-exempt bonds, restricted fixed-rate bondholders and a letter-of-credit provider on the terms of a consensual restructuring of the company's debt and tax-exempt bonds or obtain a forbearance agreement.

Clare Oaks said it intends to reorganize under a Chapter 11 plan or look to sell its business to a buyer that could continue to operate the Clare Oaks campus.

In connection with the bankruptcy filing, the company is seeking court approval to use cash collateral to fund its operations while in bankruptcy.

According to court documents, Clare Oaks had $107.2 million of assets and $136.9 million of debt as of June 30.

The company did not list any unsecured creditors with claims of $1 million or more.

Clare Oaks is represented by Ungaretti & Harris LLP.

Bartlett, Ill.-based Clare Oaks operates a continuing-care retirement community. The Chapter 11 case number is 11-48903.

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