Texas Non-Profit Defaults on Three More Senior-Living Muni Deals

Three subsidiaries of The Emmaus Calling, a non-profit run by a Texas family, defaulted on municipal bonds issued to acquire senior-living facilities, bringing the amount of defaulted debt on facilities the organization owns to about $267 million.

Emmaus subsidiary Cardinal Bay Inc. defaulted on about $98 million of senior debt issued in 2016 to acquire eight facilities in Texas and Oklahoma, while 4-K Housing, Inc. defaulted on about $30 million of senior debt sold in 2017 to buy three communities in Texas, according to securities filings. The trustee withheld payment payments due Jan. 1 after the two subsidiaries ...