Cedar Haven Healthcare Center, the former county home sold to private owners in 2014, has emerged from the bankruptcy its operator filed in August 2019, when it cited millions of dollars owed to over 200 creditors.

United States Bankruptcy Judge J. Kate Stickles signed an order on Nov. 2 that officially ended the Chapter 11 bankruptcy and cleared the way for the facility’s operator, Cedar Haven Acquisition LLC (“CHALLC”), to run it without court supervision.

A business in a Chapter 11 bankruptcy proposes a plan to reorganize its debt and pay its creditors over time, keeping the business alive. Stickles approved CHALLC’s reorganization plan in August.

In 2013, rising pension costs and declining Medicaid reimbursements meant the county’s nursing home was losing about $1.5 million a year, and county commissioners voted 2-1 to sell the facility. After some confusion about the identity of the buyer, Cedar Haven’s equipment and non-real estate assets were sold to CHALLC, and the building and grounds to 590 S. 5th Ave. LLC.

CHALLC has been leasing the building from 590 S. 5th Ave. LLC.

After filing for bankruptcy relief, CHALLC tried unsuccessfully to sell the operation, prolonging the proceedings.

Early fears that the bankruptcy would cause the facility to be closed, putting residents on the street turned out to be unfounded.

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Chris Coyle writes primarily on government, the courts, and business. He retired as an attorney at the end of 2018, after concentrating for nearly four decades on civil and criminal litigation and trials. A career highlight was successfully defending a retired Pennsylvania state trooper who was accused,...


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