Hundreds of dollars the Port Washington-based retirement community owes residents and families of deceased residents if the proposed suitor wins the bankruptcy court auction, according to representatives of the current owners. A $10,000 admission fee will be refunded. on monday.
Harborside, formerly known as the Amsterdam of Harborside, owes at least $29 million in refunds. According to documents filed in Central Islip’s federal bankruptcy court, this is the amount that must be paid to her 30 residents and their families.
The nonprofit retirement community at 300 E. Overlook last month sought protection from creditors under Chapter 11 bankruptcy for the third time in nine years. We listed assets between $100 million and $500 million for the same range of liabilities.
At the time, Harborside said it had a “stalker horse term sheet proposal” or bid to buy from another nonprofit, the New England Life Plan Communities Corporation.
In bankruptcy proceedings, the stalking bidder is the first bidder with whom the debtor negotiates the purchase contract. According to law firm Jones Day, stalking horses typically set the lowest bid bar at the next auction and may or may not end up being the winner.
New England Life was founded in the fall of 2021 and based on its founding records is based in Lincoln, Massachusetts, west of Boston. Executives there did not immediately return a request for comment on Monday.
However, at a creditors meeting on Monday, Harborside agent Michael Morton said, “Current potential stalker horse bidders will have to pay back their admission fee refund obligations and former resident obligations.” I’m assuming,” he said.
Prospective residents often sell their homes to pay for Harborside admission. This was between $527,250 and $2.2 million under one type of sale contract offered in 2021, depending on apartment size. and a portion of the entrance fee will be refunded after the resident’s death.
Since then, a second type of contract has been introduced that lowers entry fees in exchange for limited nursing home services. The deal was to increase the number of people living in Harborside, CEO Brooke Navarre said two years ago.
The 329 Harborside units offer varying levels of care, from assisted independent living apartments to nursing homes and dementia care, depending on the age of the occupants.
At Monday’s hour-long creditors’ meeting, Harborside representatives were asked what they would do if the stalked horse bidder failed to win.A representative said, “At the moment [the retirement community] We are currently focused on sales or tie-up transactions with third parties. ”