The company that bought Cedar Haven, the county home, from Lebanon County in 2014 has filed for bankruptcy.
The company, Cedar Haven Acquisition, LLC. (“CHALLC”), filed a petition for Chapter 11 bankruptcy relief in Delaware on August 2.
The bankruptcy filing specifically lists 20 creditors, owed more than $7 million collectively, but the company says it has more than 200 creditors.
Total estimated assets of CHALLC were shown as between $1 million and $10 million, while debts were placed between $10 million to $50 million.
Chapter 11 bankruptcy filing stops most creditors from pursuing debt collection efforts and allows the bankrupt company to keep operating while it develops a reorganization plan.
Generally, business goes on as normal immediately after Chapter 11 filings, without employee layoffs or other disruptions.
The bankruptcy petition shows Stone Barn Holdings, LLC, as a 95% owner of CHALLC. Stone Barn emerged as the day-to-day operator of Cedar Haven shortly after the county sold it.
According to the bankruptcy petition, CHALLC expects to have money available to at least partially pay “unsecured creditors.” Unsecured creditors do not have judgments, mortgages, or liens, so they usually find themselves at the end of the line in bankruptcy payouts, and frequently get less than 100% of what they are owed.
LebTown recently reported on the sale of Cedar Haven five years on, and how the County Commissioners viewed the state of the facility. Regular state and federal inspections since the sale have revealed virtually no deficiencies in facilities or patient care quality.
The Lebanon Daily News had earlier reported that Cedar Haven Acquisition, LLC. and Stone Barn Holdings became involved late in the 2014 sales negotiations when the original buyer appeared to have cash problems.
In a Facebook post this morning, County Commissioner Jo Ellen Litz, who was the only commissioner to oppose the sale, said that she learned of the filing yesterday, but chose not to go public until today.
“I didn’t sleep much last night trying to figure out if I should keep this to myself or share with you,” she said. “This morning God placed on my heart to share in a loving way, and ask the entire community to unite, not divide.”
The bankruptcy petition, including a listing of the largest creditors, can be viewed here (PDF).