Clare Oaks looks to extend effective date milestone, DIP financing

By Caroline Salls

Pittsburgh, Nov. 2 - Clare Oaks requested court approval of a sixth amendment to its debtor-in-possession financing, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The company said it reached an agreement with the DIP lender and its secured creditors to extend the sole remaining milestone related to the effectiveness of a plan of reorganization and the maturity date of the facility for two additional one-month periods, but not later than Dec. 31.

Clare Oaks must pay a $60,000 extension fee for each one-month extension.

In addition, the DIP lender and each of the secured creditors agreed to forbear from exercising any rights during the period of Nov. 1 through Nov. 6.

A hearing is scheduled for Nov. 6.

Bartlett, Ill.-based Clare Oaks operates a continuing-care retirement community. The company filed for bankruptcy on Dec. 5, 2011 under Chapter 11 case number 11-48903.

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