(Bloomberg) – Petersen Healthcare, which operates about 100 nursing homes and assisted living facilities in the Midwest, is preparing to file for Chapter 11 bankruptcy protection in the coming weeks, people familiar with the matter say. revealed by the people. This is a private matter and will not be identified.
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The Peoria, Illinois-based company has had more than a dozen locations placed into administration in recent weeks, according to court documents. Chapter 11 consolidates the lawsuit and creditors into one venue, allowing him to continue operating the company while developing a debt repayment plan.
A representative for Mr. Petersen did not respond to a request for comment. Negotiations are not final and plans are subject to change, the people added.
In late January, a court ordered some of the company’s facilities to be placed into receivership after lenders claimed the company had defaulted on its debts. Two more facilities were placed under administration on Tuesday.
Senior-serving companies have faced immense pressure since the start of the COVID-19 pandemic. Many struggle with persistent staff shortages, high costs of labor, supplies and insurance, and inadequate government reimbursement.
–With assistance from Lauren Coleman-Lochner.
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