Park Place of Elmhurst: Bankruptcy and Reorganization
At Park Place of Elmhurst, a Life Plan Community in Elmhurst, IL, we’re transparent about our financial strength. In fact, in 2020, we restructured our loans, refinancing our debt to a lower interest rate in the best interest of our long-term financial health and stability.
Although these changes were positive, this may mean you have heard Park Place and bankruptcy used together. We know this term can have some negative connotations, so we’d like to share exactly what this means for our community, residents and families.
Did Park Place of Elmhurst file for bankruptcy?
Park Place recently went through loan restructuring, a form of debt reorganization that is a process that must be approved by a court. In this case, debt is in the form of publicly held bonds, which means this reorganization was required to be approved by Bankruptcy Court.
This voluntary action by Park Place, as well as consenting bondholders, allowed for the management of bond debt through a reduction of interest rate as well as forgiveness of principal, a move that was supported by both parties.
What are reorganizing and restructuring?
According to the United States Courts, debt reorganization allows the debtor to stay in possession of an organization while restructuring debts.
Through restructuring, we continue to move forward as a financially stronger community with beneficial bond terms and covenants.
How will restructuring affect Park Place residents and team members?
Debt restructuring is a bit like refinancing your home mortgage to get a lower rate. Nothing else has changed at Park Place, and our community, residents, employees and vendors haven’t been negatively affected.
Instead, we simply took steps to enhance our long-term health and stability while maintaining day-to-day operations, honoring all resident contracts and ensuring all our vendors and employees were paid.
What does this mean for the future?
As a Life Plan Community, Park Place is committed to providing the best in senior living services – including Independent Living, Assisted Living, Memory Support, Skilled Nursing and Rehabilitation while providing security and stability for residents.
We also remain backed by Providence Life Services, offering the additional strength and support of a larger organization that has served seniors since 1914.
Now, with reorganization and restructuring complete, it’s simply business as usual at Park Place.
“We are pleased that Park Place and its bondholders have worked together to restructure its initial construction debt” says Carolyn Vallort, Resident Council president. The process made Park Place a financially stronger community.
We look forward to serving our seniors and families with the same financial strength you have come to know and expect over the last 10 years. It’s all part of the Park Place of Elmhurst difference, and with our residents and team by our side, we can’t wait to see all the good that will come next.
Where can I learn more?
If you have any questions about Park Place Senior Living and bankruptcy, or if you would like more information, please feel free to reach out to Barry VanderGenugten, CFO, Providence Life Services, at 630-246-2474.