Buckingham committee says statement may need ‘substantial revision’

By Sarah Lizee

Olympia, Wash., Aug. 18 – Buckingham Senior Living Community, Inc.’s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the Southern District of Texas to adjourn the hearing on approval of the company’s disclosure statement to the week of Sept. 13 from Sept. 1, according to a motion filed Wednesday.

The committee also asked for the objection deadline to be moved to Sept. 7 from Aug. 23.

The group said it believes the disclosure statement may require “substantial revision,” and it has expressed its concern that the debtor’s proposed marketing efforts and targets for new resident admittance are not realistic.

“If these targets are not achieved by the debtor, it will significantly impact recoveries to creditors under the plan, particularly recoveries to current and former residents,” the group said in its motion.

“The disclosure statement does not make these, and potentially other, material risks clear to creditors. In fact, the disclosure statement projects that these creditors will all recover 100% of their claims.”

The committee said it is still conducting its analysis of the projections underlying the plan.

The Houston-based owner and operator of a 495-unit continuing care retirement community filed bankruptcy on June 25 under Chapter 11 case number 21-32155.

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