The owner of a Dallas continuing care retirement community pushes back against the community’s plan to emerge from Chapter 11 bankruptcy, calling it a pure ‘fantasy’, according to Bankrupt company news.
Intercity Investment Properties last week asked a Texas bankruptcy court to reject a plan by Northwest Senior Housing Corp., doing business as Edgemere Dallas, according to the news outlet.
Intercity, the owner of Edgemere, said Edgemere engages in a “campaign of deception” by obscuring facts and creating unrealistic expectations, “fostering a fantasy”. The “grim reality”, according to Intercity, is that Edgemere is “hemorrhaging money, wasting resources and running out of sufficient funds to operate in Chapter 11”.
Lifespace Communities, which became the sole owner and operator of Edgemere in 2019 after entering into an affiliation with Senior Quality Lifestyles Corp., filed for Edgemere Dallas bankruptcy in April, citing pandemic challenges and a winter storm. of 2021. The community also filed a lawsuit against Intercity, alleging that the owner “engaged in unprecedented and unlawful activities aimed at destroying Edgemere’s business.”
Northwest Senior then filed a lawsuit against Intercity and its agent, Kong Capital, for engaging in “unprecedented and unlawful activities aimed at destroying Edgemere’s business.” Northwest accused Intercity of attempting to terminate its 52-year land lease with Edgemere and “wrongfully taking over the property” the community is sitting on for reuse and “making a windfall profit”.
Intercity’s actions, according to the complaint, endanger the well-being of Edgemere’s 400 residents by resulting in the loss of entrance fee deposits, the loss of their homes and the loss of health services, according to the media.
Shortly after, Intercity filed a countersuit alleging that “Edgemere misled new residents about its financial condition between 2021 and 2022.”
On Aug. 11, Northwest Senior filed a motion seeking an extension, which Intercity Investment called “unrelated to legal (or economic) realities,” according to Bankrupt Company News. Intercity called for the Chapter 11 case to be dismissed, saying Northwest’s plan read “like a Disney fairy tale” and gave Edgemere residents a false sense of security that their deposits were safe.