Buckingham Bondholders Oppose Residents Bankruptcy Payment Shift

A bondholder argued that senior residents of Buckingham Senior Living Community Inc. fall well short of what’s needed for their bankruptcy claims to be put first in line for payment.

UMB Bank NA, the bankruptcy trustee for Buckingham, defended itself against claims of misconduct by the residents and an unsecured creditors’ committee, in a March 13 filing in the US Bankruptcy Court for the Northern District of Texas.

The committee provided no evidence “of any wrongdoing, let alone conduct rising to the level of ‘gross and egregious’” or fraud, the bank argued, which would be required to support equitable subordination, ...