Fitch: CCRC Bankruptcies No Cause for Alarm
Despite several recent reports of Chapter 11 bankruptcy filings among continuing care retirement communities (CCRCs) in the past week, there is no cause to raise the alarm for a sector-wide concern, according to Fitch Ratings.
Within the last week, two CCRCs in Indiana and New York both announced Ch.11 filings, each citing various pressures brought on by the economic Recession.
The former, River Terrace Estates in Bluffton, Ind., opened in 2003. In 2008, non-profit corporation Continuums Foundation obtained leadership of the 501(c)(3) not-for-profit. Despite ongoing efforts to stabilize the CCRC, Continuum Foundations opted for the Ch. 11 filing to help meet is $14 million outstanding debt obligations.
The latter, The Amsterdam at Harborside in Port Washington, N.Y., is more reflective of the continued challenges faced by both start-ups and large-scale CCRC expansions that were financed and opened during the challenging 2006-2010 economic environment, according to Fitch.
To read the full article, click here.