Bankruptcy Law

Coronavirus Forces New Loan for Bankrupt Senior Care Centers

March 18, 2020, 7:21 PM

Senior Care Centers announced a new loan to replace bankruptcy exit financing that was canceled because of the financial effects of the new coronavirus.

The skilled nursing facility operator and services provider had to scramble to acquire new exit financing after lender MidCap Financial Services LLC told the debtor March 3 that it wouldn’t close the deal, Senior Care said in filings in the U.S. Bankruptcy Court for the Northern District of Texas. MidCap backed out the same day that $20 million loans were supposed to close and the reorganization plan was supposed to be effective.

The lender’s “internal credit...

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