Tarrant County Senior Living Chapter 11 plan effective as of Jan. 3

By Caroline Salls

Pittsburgh, Jan. 6 – Tarrant County Senior Living Center, Inc.’s pre-packaged plan of reorganization took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The plan was confirmed on Dec. 20.

As previously reported, Tarrant filed bankruptcy to complete a municipal bond refinancing.

The company said its pre-packaged plan is the result of negotiations with its former sole corporate member Senior Quality Lifestyles Corp. (SQLC), current sole corporate member Lifespace Communities, Inc., bond trustee UMB Bank, NA and the holders of at least 67% of municipal bond claims against the company.

The plan is designed to provide Tarrant with a long-term resolution of its financial distress so that it can service its debt, fulfill its charitable mission and honor its commitments to residents.

To accomplish that, Tarrant, SQLC, Lifespace, the trustee and the bondholder steering committee have agreed to the terms of an affiliate agreement, liquidity support agreement, second forbearance agreement and plan support agreement together with a refinancing of the company’s bond obligations.

The refinancing transaction includes a substation of Lifespace as the sole member, which occurred on June 20, a consensual, tax-exempt refinancing of the bonds, an agreement by the trustee not to enforce its default-related rights while Tarrant completes the refinancing and an agreement by Lifespace to provide liquidity support before, during and following the bond refinancing.

Under the plan support agreement, Tarrant will exchange the existing bonds for new 5¾% Tarrant County Cultural Education Facilities Finance Corp. retirement facility revenue bonds, series 2020.

A total of $105.8 million of the new bonds will be issued.

Addison, Tex.-based Tarrant operates a continuing care senior living community. The company filed bankruptcy on Nov. 5 under Chapter 11 case number 19-33756.

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