Investors Fight Senior Living Developer’s Bankruptcy Financing

Inspired Healthcare Capital Holdings should be denied a request to fund its bankruptcy with a $35 million loan because the terms would encumber solvent senior living community projects, a group of project investors said.

Inspired Healthcare’s Chapter 11 restructuring bid is improperly set up to impact 31 Delaware statutory trusts, only marginally owned by the company, that have long been used as investment vehicles, a group of 2,300 consumer real estate investors said in an objection Thursday with the US Bankruptcy Court for the Northern District of Texas.

The private equity company’s bid to consolidate the Delaware trust entities—most of ...