Reimbursement of millions of dollars in admission fees owed by Port Washington-based retirement community to residents and families of deceased residents will be paid out if proposed suitor wins bankruptcy court auction will be split. said the future owner.
Harborside, formerly known as the Amsterdam of Harborside, owes at least $29 million in refunds. According to documents filed in Central Islip’s federal bankruptcy court, this is the amount that must be paid to her 30 residents and their families.
The nonprofit retirement community at 300 E. Overlook last month sought protection from creditors under Chapter 11 bankruptcy for the third time in nine years. We listed assets between $100 million and $500 million for the same range of liabilities.
At the time, Harborside said it had a “stalker horse term sheet proposal” or bid to buy from another nonprofit, the New England Life Plan Communities Corporation.
In bankruptcy proceedings, a stalking bidder is the first bidder with whom the debtor negotiates a purchase agreement. According to law firm Jones Day, stalking horses typically set the lowest bid bar at the next auction and may or may not end up being the winner.
New England Life was founded in the fall of 2021 and based on its founding records is based in Lincoln, Massachusetts, west of Boston.
“We intend to be able to fund all refunds of admission fees by any of the residents who have moved out. [of the Harborside] Or to the families of the deceased residents,” New England Life president Larry Bradshaw told Newsday on Tuesday.
His comments followed Monday’s creditors’ meeting, where Harborside agent Michael Morton said, “Current potential stalker horse bidders will be subject to a refund obligation for admission and a previous resident. We expect to return the obligation,” he said.
Prospective residents often sell their homes to pay for Harborside admission. This was between $527,250 and $2.2 million under one type of sale contract offered in 2021, depending on apartment size. and a portion of the entrance fee will be refunded after the resident’s death.
Since then, a second type of contract has been introduced that lowers entry fees in exchange for limited nursing home services. The deal was to increase the number of people living in Harborside, CEO Brooke Navarre said two years ago.
The 329 Harborside units offer varying levels of care, from assisted independent living apartments to nursing homes and dementia care, depending on the age of the occupants.
At Monday’s hour-long creditors’ meeting, Harborside representatives were asked what they would do if the stalking horse bidder failed to win.A representative said, “At the moment [the retirement community] We are currently focused on sales or tie-up transactions with third parties. ”
