Edgemere defends Chapter 11 case, blasts landlord’s ‘baseless attacks’

By Sarah Lizee

Olympia, Wash., Aug. 24 – Northwest Senior Housing Corp., which does business as Edgemere Dallas, objected to a motion to dismiss its Chapter 11 case filed by landlord Intercity Investment Properties, Inc., according to court documents filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The company called the motion to dismiss a “disguised objection” to either the disclosure statement or the Chapter 11 plan.

“Like many other pleadings filed by the landlord in these Chapter 11 cases, the incendiary rhetoric and intentional misstatements seem designed to drive negative media coverage and further litigate to the press,” the company said in its objection.

“The landlord’s baseless attacks are further attempts to frighten and confuse current and prospective residents, complicating the debtors attempts to successfully reorganize, while improving occupancy and continuing sales.”

As previously reported, Edgemere has been in a continued dispute with its landlord. Simultaneously with the bankruptcy filing, Edgemere filed a lawsuit against Intercity Investments and its agent, Kong Capital, alleging claims for breach of contract, promissory fraud, tortious interference with business and contractual obligations, civil conspiracy, and equitable subordination.

The landlord claimed the debtors “continue to engage in a campaign of deception before this court and Edgemere’s residents by obscuring the facts and creating unrealistic expectations for both.”

The landlord accused the debtors of engaging in a “campaign of deception” and described the Chapter 11 plan as a “public relations gambit.”

Edgemere responded by saying the plan is an “honest and zealous attempt” to provide current and former residents, as well as other creditors and parties in interest, with the best possible outcome.

“No matter how unattractive the plan is to the landlord, the debtors should be afforded a full and fair opportunity to accomplish their goals in these Chapter 11 cases,” the debtor said.

The Dallas-based luxury senior living community filed Chapter 11 bankruptcy on April 14 under case number 22-30659.

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