Kingswood Senior Living gets confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Nov. 5 – Kansas City United Methodist Retirement Home, Inc., which does business as Kingswood Senior Living Community, received confirmation of its Chapter 11 plan, according to a minute entry filed Friday with the U.S. Bankruptcy Court for the Western District of Missouri.

As previously reported, the company said in its disclosure statement that as a result of extensive negotiations with UMB Bank, NA, as bond trustee for its $51.77 million of series 2016 senior living facility revenue bonds, and holders of at least 50% of the bond claims, it has executed a plan support agreement that will provide for a long-term resolution of its financial issues.

The plan provides for the funding of an additional $9.9 million in new money bond financing comprising $5.5 million principal amount of new series 2021A bonds to refinance some project costs and fund working capital and other expenses and $4.4 million principal amount of new series 2021C bonds to fund designated capital improvements.

The existing series 2016 bonds will be exchanged for a pro rata share of $27 million principal amount of new series 2021B bonds and $12.05 million principal amount of new series 2021D bonds.

Under the plan, holders of administrative expense claims, accrued professional compensation claims, other priority claims and priority tax claims will receive payment in full.

Holders of other secured claims will receive cash equal to their claims or the collateral securing their claims.

Holders of bond claims will receive their ratable share of the series 2021B bonds and series 2021D bonds on the effective date.

The company will pay an amount equal to 100% of the allowed amount of each general unsecured claim.

Holders of resident refund claims will receive payment of 100% of the allowed amount of claims in line with the existing residency agreement.

Kingswood Senior Living Community is a Kansas City, Mo.-based owner and operator of a continuing care retirement community. The company filed bankruptcy on Aug. 18 under Chapter 11 case number 21-41049.

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