Christian Care Centers Inc.
Christian Care Centers Retains Houlihan Lokey to Advise on Restructuring, Sale; Bond Trustee Forgoes Aug. 15 Principal, Interest Payments ‘in Light of the Uncertainty’
Fri 08/13/2021 15:58 PM
Relevant Document:
Notice (Aug. 13)
Trustee UMB Bank today posted a notice to EMMA disclosing that Christian Care Centers and Christian Care Foundation, the obligated group on the retirement facility revenue bonds issued by Mesquite Health Facilities Development Corp., had retained Houlihan Lokey as investment banker in accordance with the June 30 forbearance agreement’s milestones. Houlihan Lokey will be advising the group on its capital structure, the possibility of a sale of one or more of the three senior housing communities operated by the obligors in Fort Worth, Allen and Mesquite, Texas, or a restructuring of the obligated group’s debt, including the bonds. Continue reading below as our Americas Municipals team provides an update on the Christian Care Centers restructuring and click here to request a trial for access to the relevant documents below as well as our analysis and reporting on hundreds of other stressed, distressed and performing credits.
The notice states that the forbearance agreement expires by its terms on Sept. 30 and that Houlihan is expected to provide a report to the obligated group with its recommendations prior to the expiration date. Thereafter, the report will be shared with the trustee, the notice says.
UMB Bank indicates that “in light of the uncertainty” of the situation and because the obligated group has failed to deposit any funds toward the payment of principal and interest due on the bonds on Aug. 15, no payment of interest or principal will be distributed.
The notice provides the following summary of the remaining balances in the various funds as of Aug. 12:
Notice (Aug. 13)
Trustee UMB Bank today posted a notice to EMMA disclosing that Christian Care Centers and Christian Care Foundation, the obligated group on the retirement facility revenue bonds issued by Mesquite Health Facilities Development Corp., had retained Houlihan Lokey as investment banker in accordance with the June 30 forbearance agreement’s milestones. Houlihan Lokey will be advising the group on its capital structure, the possibility of a sale of one or more of the three senior housing communities operated by the obligors in Fort Worth, Allen and Mesquite, Texas, or a restructuring of the obligated group’s debt, including the bonds. Continue reading below as our Americas Municipals team provides an update on the Christian Care Centers restructuring and click here to request a trial for access to the relevant documents below as well as our analysis and reporting on hundreds of other stressed, distressed and performing credits.
The notice states that the forbearance agreement expires by its terms on Sept. 30 and that Houlihan is expected to provide a report to the obligated group with its recommendations prior to the expiration date. Thereafter, the report will be shared with the trustee, the notice says.
UMB Bank indicates that “in light of the uncertainty” of the situation and because the obligated group has failed to deposit any funds toward the payment of principal and interest due on the bonds on Aug. 15, no payment of interest or principal will be distributed.
The notice provides the following summary of the remaining balances in the various funds as of Aug. 12:
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