Bay 9 Holdings stepped in as the white knight to take over a bankrupt continuing care retirement/life plan community in Dallas. Lifespace Communities had been forced to file bankruptcy at their Edgemere community due to challenges related to the Covid pandemic and damage from a destructive winter storm earlier this year.
The approved plan called for Lifespace Communities reimbursing nearly 300 families approximately $145 million for entrance fees paid. A trust was established through the bankruptcy process that is intended for refunds owed residents.
McKnight Senior Living reports that Edgemere has begun converting from an entrance-fee model into a rental model, with new resident contracts already drafted and rates remaining unchanged for most residents. Additionally, more than 99% of staff members will remain on board so operations and services can continue without disruption or interruption.
