Erickson Retirement Communities DIP loan hearing set for Wednesday

By Lisa Kerner

Charlotte, N.C., Dec. 8 - Erickson Retirement Communities, LLC's final hearing on approval of its debtor-in-possession financing was rescheduled to Dec. 9, according to an attorney close to the case.

The hearing was scheduled to be heard by the U.S. Bankruptcy Court for the Northern District of Texas on Dec. 8.

On Dec. 4, the official committee of unsecured creditors objected to the company's proposed DIP financing.

As previously reported, the committee argued that the terms of the loan allow the company to lock up the stalking horse bidder as the successful bidder for its assets before the auction is held.

The DIP lender is an affiliate of the stalking horse bidder, a Dec. 4 filing said.

Baltimore-based Erickson Retirement develops full-service retirement communities. The company filed for bankruptcy on Oct. 19. Its Chapter 11 case number is 09-37010.

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