Below is a representative list of various matters involving distressed health care facilities in which Flanagan, either directly or on behalf of his clients, has been involved since 1989.
Below is a representative list of various matters involving distressed health care facilities in which Flanagan, either directly or on behalf of his clients, has been involved since 1989.
United States Bankruptcy Court for the Western
District of Missouri, Western Division,
Case No. 89-42041-11
First Humanics Corporation was one of the largest not-for-profit long-term care providers to ever file a chapter 11 bankruptcy proceeding. This case involved twenty-one (21) nursing homes that were acquired through the issuance of approximately $83,000,000 in I.R.C. § 501(c)(3) tax-exempt bonds. Flanagan represented the debtor in this proceeding and developed and confirmed the plan of reorganization which involved obtaining a $5,000,000 super-priority priming loan for use as post-confirmation working capital and numerous modifications to the existing bond documents to maximize the return to bondholders.
United States Bankruptcy Court for the Western
District of Kentucky, Louisville Division,
Case No. 94-32247-11
Flanagan represented the special advisor to Mark Twain Bank, as Successor Indenture Trustee for the $22,370,000 County of Jefferson (Kentucky) First Mortgage Residential Care Facilities Revenue Bonds (Treyton Oak Towers Economic Development Project) Series 1988, in connection with the debtor’s chapter 11 bankruptcy proceeding until the debtor’s plan was confirmed in August, 1995.
United States Bankruptcy Court for the Middle
District of Tennessee, Nashville Division,
Case No. 391-04724-11
Flanagan prepared and filed a plan of reorganization on behalf of his bondholder client proposing to purchase this long term care facility through a refunding the $4,900,000 Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, Tennessee Industrial Revenue Bonds (Brook Meade Health Care Center Project) Series 1985 and the $575,000 Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, Tennessee Industrial Revenue Bonds (Brook Meade Health Care Center Project) Series 1986. While Flanagan’s client was not the successful plan proponent, Flanagan’s client was paid a substantial “break up fee” not to pursue its plan.
Pensacola, Florida
Flanagan represented the receiver of this Florida nursing home, which was appointed at the request of the debtor and Barnett Bank, as Successor Indenture Trustee for the $3,700,000 Pensacola Care, Inc. First Mortgage Revenue Bonds Series 1980, from October, 1992 until the facility was sold by Barnett Bank to a third party in 1996.
United States Bankruptcy Court for the
District of Kansas, Topeka Division,
Case No. 97-41334-11
The Phoenix Rehabilitation Center, Inc. is a Kansas not-for-profit corporation which owned The Phoenix Nursing & Rehabilitation Center, a 235 licensed bed skilled nursing facility located in Olathe, Kansas. Flanagan’s client provided post-petition consulting services, as well as a debtor in possession loan in the total amount of $150,000, to the owner during its chapter 11 bankruptcy proceeding filed on May 16, 1997. At the time that the chapter 11 bankruptcy was filed, the facility was the subject of a de-certification proceeding and its Medicaid provider agreement was set to terminate on June 9, 1997. Flanagan’s client ultimately purchased the facility pursuant to a credit bid which was submitted in accordance with 11 U.S.C. § 363(k) in an amount equal to the first mortgage note which had been previously purchased by Flanagan’s client.
Peoria County, Illinois
Flanagan represented the consultant and special advisor for the operation of Belwood Nursing Home, which is owned and operated by Peoria County, Illinois.
Kansas City, Missouri
On January 14, 1999, Flanagan’s client was engaged by the state court appointed receiver to manage this 120 unit residential care II facility located in Kansas City, Missouri following the receiver’s appointment upon the request of the Missouri Department of Social Services, Division of Aging.
United States Bankruptcy Court for
the Eastern District of Louisiana
Case No.’s 99-11875-11, et seq.
(Jointly Administered)
On April 14, 1999, Axiom Healthcare Services, Inc., together with six (6) wholly owned limited liability companies (collectively “Axiom”), filed voluntary chapter 11 petitions for relief. Pursuant to an order entered by the Bankruptcy Court on or about April 19, 1999, Flanagan’s client began managing six (6) skilled nursing facilities leased or owned and operated by Axiom that are located in the State of Oklahoma. Flanagan’s client also provided Axiom with a debtor in possession line of credit in the total amount of $500,000 for use as working capital at the facilities. Shortly following the filing of the procedure, it became clear that Axiom would be unable to reorganize its affairs, primarily since five (5) of the facilities were leased by Axiom and the landlord was unwilling to make the concessions necessary to allow the facilities to operate profitably. Therefore, upon the advice of Tutera, the Court rejected the leases for the five (5) facilities effective as of June 11, 1999, thereby preserving the ability of Axiom to pay in full its administrative expense claims owing to creditors.
Kansas City, Missouri
On July 12, 1999, Flanagan’s client was appointed by the Missouri Department of Social Services, Division of Aging and the licensed operator of the facility to serve as the temporary manager to manage and close this 180 bed skilled nursing facility leased and operated by an affiliate of Lenox Healthcare located in Kansas City, Missouri, which has a population of 132 residents upon the date of appointment. Within approximately 3 weeks of being appointed as receiver, all residents were relocated to other facilities and this facility was closed in accordance with applicable law.
United States Bankruptcy Court for
the Northern District of Illinois
On March 24, 2000, Brentwood North Nursing and Rehabilitation Center, Inc. and Riverwoods Associates each filed Voluntary Chapter 11 Petitions for Relief with the United States Bankruptcy Court for the Southern District of Florida, which cases were later transferred to the United States Bankruptcy Court for the Northern District of Illinois. Riverwoods owns and leases Brentwood Nursing and Rehabilitation Center, a 244 licensed bed skilled care and rehabilitation facility located near Deerfield, Illinois to Brentwood. Flanagan’s client took over the management of Brentwood immediately prior to the filing of the chapter 11 proceedings and, in conjunction therewith, offered to make a debtor in possession loan in the amount of $500,000 available to Brentwood. However, this offer ultimately caused Brentwood’s primary working capital lender to make a $500,000 debtor in possession loan available to Brentwood on virtually identical terms and conditions as those offered by Flanagan’s client. This facility was sold on July 20, 2001 through a bankruptcy court auction.
On October 1, 2000, Flanagan’s client took over the day-to-day management of thirty-one (31) long term care facilities located in the State of Illinois which are owned by Senior Living Centers, LLC. These facilities, together with an additional fifty-five (55) facilities located in Texas which are owned by SLP, serve as the collateral for a $225,000,000 loan provided to SLP by GMAC Commercial Mortgage Credit Corporation. Flanagan’s client was selected as the replacement third party manager for these thirty-one (31) facilities following an extensive interview process jointly conducted by SLP, GMAC and ZC Specialty Insurance Company, which had issued a surety bond in the amount of $140,000,000 to secure, in part, repayment of the obligations owing by SLP to GMAC. These facilities were subsequently sold to a third party.
Chattanooga, Tennessee
On March 1, 2001, Flanagan’s client took over the day-to-day management of the Grand Court II – Chattanooga, which is a 142 unit independent living and assisted living facility located in Chattanooga, Tennessee. This facility was previously operated by Grand Court Lifestyles, Inc., who is currently involved in a chapter 11 proceeding pending before the United States Bankruptcy Court for District of New Jersey. This engagement was arranged by CRIIMI MAE Services, L.P., as the subservicer for the holder of first mortgage loan. This facility was later sold to a third party.
On August 15, 2001, Flanagan was appointed the receiver for The Manor, a 225 bed skilled nursing facility located in Las Vegas, Nevada which opened in 1999, in conjunction with a legal proceeding filed by Key Corporate Capital, Inc. seeking to foreclose on the facility based upon the borrowers’ default on indebtedness owing to Key in excess of $16,000,000. In conjunction with his appointment as Receiver, Flanagan engaged Tutera to assume the day to day management of the facility, and oversaw the marketing and negotiations for the sale of the facility through a foreclosure sale.
Kansas City, Kansas
On March 21, 2002, Flanagan was appointed as the receiver of the Grand Court II – Kansas City, Kansas, which is a 127 unit independent living and assisted living facility located in Kansas City, Kansas. Flanagan’s appointment was accomplished at the request of Brotherhood Bank & Trust Company, which held the first mortgage loan and was the subject of a foreclosure action. This facility was ultimately sold by Brotherhood following its foreclosure for more than the original debt against it based, in part, on the actions of the Reciever to stabilize and improve the operation of the facility.
United States Bankruptcy Court for the Northern
District of Georgia, Atlanta Division
Case No. 02-63019
Metro Health/Indiana, Inc. filed a voluntary chapter 11 petition for relief on March 19, 2002. Metro owns and operates twenty (20) long-term care facilities located in Indiana. On September 20, 2002, Tutera was appointed as the oversight manager and consultant for the Metro Health/Indiana facilities. Flanagan’s client is the oversight manager in this chapter 11 proceeding, with its primary duties to include reviewing and commenting on Metro’s operations in an effort to improve the profitability and efficiency of the facilities, as well as recommending changes in the owner’s operating procedures and confirming whether certain facilities should be sold or closed.
Monroe, Louisiana
On November 19, 2002, Flanagan’s client was appointed as the receiver of Maplewood Nursing and Rehabilitation Center, a 99 bed licensed skilled nursing care facility located in Monroe, Louisiana, at the request of Bank One Trust Company, N.A., which is the indenture trustee of the tax exempt bonds which encumber the facility. Flanagan negotiated the sale of the facility in conjunction with a foreclosure sale.
Norcross, Georgia
On January 21, 2003, Flanagan was appointed as the rent receiver of Country Gardens, a 27 bed assisted living facility located in Norcross, Georgia. Flanagan’s appointment was requested by CRIIMI MAE Services, L.P., as the subservicer for holder of the first mortgage loan. This facility was later sold to a third party.
The Plaza at Sun Mountain and The Regency Plaza at Sun Mountain Las Vegas, Nevada
On March 11, 2003, Flanagan was appointed the receiver for The Plaza at Sun Mountain, a 179 unit assisted living facility, and The Regency at Sun Mountain, a 188 licensed bed skilled nursing facility, both of which are located in Las Vegas, Nevada. Flanagan was appointed in conjunction with a legal proceeding filed by Lehman Brothers Holdings, Inc. seeking to foreclose on the facility based upon the borrowers’ default on indebtedness owing to Lehman Brothers in excess of $20,000,000. The facility was thereafter sold for a price well in excess of the amount of the debt outstanding at the time of the foreclosure.
United States Bankruptcy Court for the Middle
District of Louisiana, Baton Rouge Division
Case No. 02-11621
Southern Healthcare Systems, Inc. filed a voluntary chapter 11 petition for relief on June 11, 2002. Southern owns and operates six (6) long-term care facilities located in Texas, Kentucky and Tennessee. On December 11, 2002, a chapter 11 trustee was appointed to serve in the case. On April 29, 2003, the chapter 11 Trustee engaged Tutera as the oversight manager and consultant for Southern’s facilities, which engagement was arranged by Flanagan. Tutera’s primary duties included reviewing and commenting on the clinical and accounting aspects of Southern’s operations untilt the sale of the facilities was closed.
Wichita, Kansas
On November 24, 2004, Flanagan was appointed as the receiver for The Vyne at Crestview, an assisted living facility located in Wichita, Kansas. Flanagan’s appointment was made at the request of TouchStone Asset Management LLC, as servicer for TC10 Grantor Trust, which filed a foreclosure action against its collateral. Flanagan negotiated the sale of the facility to a third party at a price which was in excess of the appraised value of the facility.
Mount Vernon, Illinois
On February 2, 2005, Flanagan was appointed by the Circuit Court of the Second Judicial Circuit, Jefferson County, Illinois as the receiver for Casey Care Center, Jeffersonian Care Center and Mount Vernon Care Center, all three of which are skilled nursing facilities located in Mount Vernon, Illinois which are owned by Caravilla Charitable Corporation, an Illinois not-for-profit corporation. Flanagan’s appointment was made at the request of Midland Loan Services, Inc., as servicer for PAMI MidAtlantic LLC, which filed a foreclosure action against its collateral. Flanagan oversaw the sale of the facilities to a third party purchaser of the lender’s debt at a foreclosure sale conducted in Jefferson County, Illinois.
Austin, Texas
On May 27, 2005, the Circuit Court of the 200th Judicial Circuit, Travis County, Texas, in an action styled: TC10 Grantor Trust, Plaintiff, vs. Century Care of America, Inc. et al., Defendants., Case No. GN501-879, appointed Flanagan as the receiver for Austin Nursing Center, a 170 bed skilled nursing facility located at 110 E. Live Oak at Congress, Austin, Texas. Flanagan was appointed as the receiver for the Facility at the request of TC10 Grantor Trust, who is the holder of the first mortgage indebtedness encumbering the Facility. This facility was sold in August 2007 to a third party.
Richmond, Virginia
On March 3, 2006, the Circuit Court for Henrico County, Virginia, in an action styled: TC14 Grantor Trust, Plaintiff, vs. Chestnut Grove, L.P., Defendants, Case No. CL06-466, appointed Flanagan as the receiver for Chestnut Grove Assisted Living Facility. Flanagan was appointed as the receiver for the Facility at the request of TC14 Grantor Trust, who is the holder of the first mortgage indebtedness encumbering the Facility. Flanagan thereafter sold the facility to a third party at a foreclosure sale.
Garden City, Kansas
On February 13, 2008, the 25th District Court for Finney County, Kansas, in an action styled: Bank of Oklahoma, N.A., as successor trustee for the holders of the Retirement Facility Refunding Revenues Bonds (Garden Valley Retirement Village, Inc.) Series 1993, Plaintiff, vs. Garden Valley Retirement Village, Inc. and the City of Garden City, Kansas, Defendants, Case No. CV-08, appointed Flanagan as the receiver for Garden Valley Retirement Village. The Facility was later sold at a foreclosure sale.
Stateboro, Georgia
On February 5, 2007, the Superior Court for Bulloch County, Georgia, in an action styled: TI – HUD Investments I, L.L.C., Plaintiff, vs. Integra of Statesboro, L.L.C., Defendant, Case No. 1B07CV068T, appointed Flanagan as the receiver for Gentilly Gardens Assisted Living Facility. The Receiver was appointed at the request of TI – HUD Investments I, L.L.C.. The Facility was later sold at a foreclosure sale.
St. Louis, Missouri
On August 23, 2006, the Circuit Court for St. Louis City, Missouri, in an action styled: Metro St. Louis Property, LLC, Plaintiff, vs. Maloney Group and Maloney Group II, Defendants, Cause No. 0622-CC05304, appointed Flanagan as the receiver for Maloney Group II and St. Louis Hills Retirement Center. Flanagan was appointed as the receiver for the Facility at the request of Metro St/. Louis Property, LLC, who is the holder of the first mortgage indebtedness encumbering the Facility, and the State of Missouri Department of Department of Health and Senior Services. The Facility was later sold to the note holder at a foreclosure sale.
Highlands, Macon County, North Carolina
On November 17, 2008, the General Court for Justice, Superior Court Division for Macon County, North Carolina, in an action styled: The Palmetto Bank, Plaintiff, vs. Highlands Senior Living Property, LLC, Highlands Senior Living, LLC, Jon M. Harder, Kristin P. Harder, Darryl E. Fisher, Carol L. Fisher and Sunwest Management Inc., Defendants. Case No. 08 CVS 798, appointed Michael F. Flanagan as the Receiver pursuant to N.C. Gen. Stat. § 1-501 et seq., over: (a) Highlands Senior Living Property, LLC; and (b) Highlands Senior Living, LLC; and (c) the senior living community commonly known as “Chestnut Hill of Highlands” located in Highlands, Macon County, North Carolina. The Receiver was appointed at the request of the Palmetto Bank. The Facility was later sold to the note holder at a foreclosure sale.
Lindenwood, Missouri
On August 30, 2010, the Circuit Court for St. Louis County, Missouri in an action styled: First Bank, Plaintiff, vs. Lindenwood Care Corporation, Jamieson Realty, L.L.C., et al., Defendants., Case No. 10SL-CC03497, Division 20 entered an Order appointing Michael F. Flanagan as the Receiver for Loving Care Home, a 111-bed Residential Care Facility I as located at 3715 Jamieson Ave., St. Louis, MO 63109. The Receiver was appointed as the receiver at the request of First Bank. The Facility was later sold to the note holder at a foreclosure sale.
New Lenox, Illinois
On December 23, 2010, the Circuit Court of Twelve Judicial District for Will County, Illinois, in an action styled: First Choice Bank, Plaintiff, vs. Paradise Park Assisted Living – New Lenox, LLC and James F. Boris, Defendants. Case No. 10 CH 7749 (Will Cty., IL), entered an Order appointed Michael F. Flanagan as the Receiver over the assisted living facility commonly known as “Paradise Park Assisted Living” located at 1023 South Cedar Road, New Lenox, Will County, Illinois. The Receiver was appointed as the receiver at the request of First Choice Bank. The Facility was sold to a third party purchaser pursuant to a Receiver’s sale approved by the court.
St. Louis, Missouri
On March 10, 2014, the Circuit Court for the City of St. Louis County, Missouri, in an action styled: State of Missouri, et al., Plaintiff, vs. Wardship Residential Care, LLC, Defendant, Case No. 1422-CC00546, entered an Order appointing Flanagan as the Receiver for Wardship Residential Care Facility, a 30 bed Residential Care II Facility located at 3409 Missouri Avenue, St. Louis, MO 63118. Flanagan was appointed as the receiver at the request of Missouri Department of Health and Senior Services. Flanagan ultimately sold the Facility to a new qualified operator.
Topeka, Kansas
On May 1, 2015, the Third Judicial District Court of Shawnee County, Kansas, in an action styled: Kari M. Bruffett, Secretary of the Kansas Department for Aging and Disability Services, Applicant, vs. Washburn Community Care Center, LLC, et al., Respondents., Case No. 15-CV-398, entered an Ex Parte Temporary Restraining Order appointing Kari M. Bruffett, Secretary of the Kansas Department of Aging and Disability Services, as the duly appointed receiver for Washburn Community Health Care, a skilled nursing facility located at 1334 Buchanan Street, Topeka, Kansas 66604. The Receiver engaged Flanagan as a consultant and business advisor to the Receiver to assist the Receiver in dicharging her duties and responsibilities as Receiver. Flanagan and the Facility’s manager closed down the Facility and relocated all of the residents to other long term care facilities in the Topeka area within approximately 30 days after being appointed.
Southeastern Missouri
On October 21, 2015, the Circuit Court for St. Louis County, Missouri, Division 12, in an action styled: Great Southern Bank, Plaintiff, vs. Arbor Health Properties, Inc., et al., Defendants, Case No. 15SL-CC03593, entered an Order appointing Flanagan as the Receiver for Close to Home, Ramsey Creek Village and Holly Ridge. The Receiver was appointed as the receiver at the request of Great Southern Bank and is currently operating these three (3) facilities.
United States Bankruptcy Court for the Western
District of Missouri, Western Division,
Case No. 94-42992-11
South Park Care Center is a 178 licensed bed skilled nursing facility located in Kansas City, Missouri. Flanagan represented Tutera as the debtor’s post-petition manager and debtor in possession lender in the total amount of $250,000. On behalf of Tutera, Flanagan proposed and confirmed a plan of reorganization in October, 1995 whereby a newly formed limited partnership (whose general partner is a limited liability company wholly owned by Tutera and whose limited partners are the debtor’s unsecured creditors) purchased this project through the assumption of various secured debts pursuant to 11 U.S.C. § 363(f).
United States Bankruptcy Court for the Southern
District of Indiana, Indianapolis Division,
Case No. 92-9594-RLB-11
The SterlingCare Group, Ltd. filed a voluntary chapter 11 petition for relief on September 18, 1992. Flanagan represented the post-petition manager and DIP lender for SterlingCare’s seven (7) facilities. During the course of this case, Flanagan prepared and filed a plan of reorganization proposing to assume the leases for these seven (7) facilities, which had a collective value in excess of $20,000,000, and operate the facilities for the benefit of the creditors. However, prior to the confirmation of this plan, the State of Indiana enacted Rule 14, which dramatically changed the method by which Medicaid payments were being reimburse to Indiana providers and rendered the continued operation of these seven (7) homes unprofitable. In part based upon the advice of Flanagan, the debtor requested that the Bankruptcy Court authorize the debtor to reject the leases for the seven (7) facilities and hand them back to their respective landlords.
Mattoon, Illinois
Flanagan represents Mattoon, Inc., which is the court-appointed receiver for this Illinois nursing home since April, 1991 in conjunction with a foreclosure proceeding filed by South Side National Bank in St. Louis, as Indenture Trustee for the $5,650,000 City of Mattoon, Illinois First Mortgage Revenue Bonds (Mattoon Manor Project) Series 1985. In conjunction with the rehabilitation of a portion of the facility, Flanagan devised a method by which the receiver make a substantial capital improvement loan for use at the facility which otherwise appeared to be prohibited under the applicable bond documents. This facility was thereafter sold to a third party.
United States Bankruptcy Court for the Middle
District of Tennessee, Nashville Division,
Case No. 395-09504
Flanagan acted as a consultant and special advisor to the debtor’s general partner in connection with the formulation, negotiation and financing of the debtor’s chapter 11 plan of reorganization. The major component of the plan was the refinancing of the $6,700,000 Health, Educational and Housing Facilities Board of the County of Sumner, Tennessee Revenue Bonds, Series 1986 (Gallatin Health Care Associates Project) through the private placement of $5,200,000 refunding tax exempt bonds and a $900,000 taxable note with a single sophisticated investor arranged by Flanagan. The debtor’s confirmed plan became effective on August 1, 1997.
United States Bankruptcy Court for the Eastern
District of Louisiana, New Orleans Division,
Case No.’s 97-14854, 97-14855, 97-14856,
97-14857, 97-14858 and 97-14859
(Jointly Administered)
On August 29, 1997, Stonebridge, L.L.C., Audubon Living Center, Inc., Carrollton-Glyndana, L.P., Flower Mound-Glyndana, L.P., Glenn Laborde, Inc., and Glyndana-Windsor, L.P., filed voluntary chapter 11 petitions for relief. Flanagan represented the post-petition manager of the six (6) facilities that are owned or leased by the above-referenced debtors. On July 23, 1998, the Bankruptcy Court confirmed plans of reorganization for Stonebridge, Cross Timbers and Amite which provided for the restructuring of debts totaling in excess of $20,000,000, including approximately $13,000,000 in long term debt currently held by Bank One Louisiana, N.A., which was negotiated, in large part, by Flanagan. Flanagan also represented Tutera in the acquisition of Windsor Care Center pursuant to a Section 363 sale of the facility conducted by the Bankruptcy Court.
United States Bankruptcy Court for the
Eastern District of Louisiana, New Orleans Division,
Case No. 98-15367-B-11
Fountain Manor, Inc., a Louisiana corporation, owned Fountain Manor, a 131 licensed bed skilled and intermediate care nursing facility located in East New Orleans, Louisiana. On September 3, 1998, the Bankruptcy Court appointed a chapter 11 trustee to take over the management and operation of FMI and the facility. The chapter 11 trustee thereafter immediately engaged Flanagan’s client to provide management services at the facility pending the sale of the facility through a bankruptcy court auction.
United States Bankruptcy Court for the Western
District of Missouri, Western Division,
Case No. 99-40827-1-11, et seq.
(Jointly Administered)
On March 8, 1999, Carewell Corporation of Oklahoma, Inc., together with six (6) wholly owned limited liability companies (collectively “Carewell”), filed voluntary chapter 11 petitions for relief. Flanagan’s client was the manager of nine (9) facilities owned and operated by Carewell until the facilities were ultimately transferred back to Carewell’s respective secured creditors following a determination that the terms and conditions by which such lenders would agree to such a transfer would be far in excess of what general unsecured creditors would ever receive if the Debtors’ were to reorganize under chapter 11.
United States Bankruptcy Court for the Western
District of Missouri, Western Division,
Case No. 99-40827-1-11, et seq.
(Jointly Administered)
On March 8, 1999, Carewell Corporation of Oklahoma, Inc., together with six (6) wholly owned limited liability companies (collectively “Carewell”), filed voluntary chapter 11 petitions for relief. Flanagan’s client was the manager of nine (9) facilities owned and operated by Carewell until the facilities were ultimately transferred back to Carewell’s respective secured creditors following a determination that the terms and conditions by which such lenders would agree to such a transfer would be far in excess of what general unsecured creditors would ever receive if the Debtors’ were to reorganize under chapter 11.
United States Bankruptcy Court for
the Western District of Louisiana
Case No. 00-50485 (Jointly Administered)
On March 9, 2000, Geriatrics, Inc., a Louisiana corporation (“Geriatrics”) and six (6) wholly owned subsidiaries filed Voluntary Chapter 11 Petitions for Relief with the United States Bankruptcy Court for the Western District of Louisiana. The subsidiaries each own and operate a long term care facility, multi-handicapped center and/or group home for the developmentally disabled. Flanagan’s client initially proposed to provide the Debtors with a debtor in possession loan in the total amount of $1,500,000, which caused the Debtors’ primary secured creditor to agree to provide a debtor in possession loan in the amount of $1,750,000 on virtually identical terms and conditions. Flanagan’s client subsequently did make a $500,000 debtor in possession loan to the Debtors, whose plan of reorganization was confirmed and went effective as of April 1, 2003. Subsequently thereafter, Flanagan represented his client in the making of a $5,300,000 loan to take out the indebtedness owing by Geriatrics to Hibernia National Bank.
Kansas City, Missouri
On July 1, 2000, Flanagan’s client took over the day-to-day management of Holmesdale Care Center for the landlord of this facility following the rejection of a lease by an affiliate of Integrated Health Services, Inc. in conjunction with IHS’s chapter 11 proceeding pending before the United States Bankruptcy Court for District of Delaware. Flanagan’s client and the landlord worked in unison with the Missouri Department of Social Services, Division of Aging to cause this facility to be closed and all of its residents relocated to other facilities in the Kansas City area by July 10, 2000.
St. Louis, Missouri
On February 5, 2001, Flanagan’s client took over the day-to-day management of Oak Forest North, a 120 bed long term care in accordance with a Consent Agreement entered into by and between Oak Forest North, L.L.C. and the Missouri Department of Social Services, Division of Aging whereby Oak Forest was permitted by the MDOA to engage Tutera as its manager in lieu of having MDOA revoke its license for failing to cure certain survey deficiencies which occurred while Oak Forest was operating the facility. Tutera ceased managing this facility on July 9, 2001 when Oak Forest, together with its various affiliates, leased all of their respective properties to a new third party operator.
Jackson, California
On April 23, 2001, Flanagan’s client took over the day-to-day management of Sunbridge Care Center for the landlord of this long term care facility following the rejection of a lease by an affiliate of Sun Healthcare Group in conjunction with Sun’s chapter 11 proceeding pending before the United States Bankruptcy Court for District of Delaware. Flanagan’s client and the landlord, together with FINOVA Capital Corporation, which held a first mortgage lien in the facility, worked in unison to take back the operations for Sun. In conjunction with the management of this facility, Tutera provided the owner with access to a $1,050,000 line of credit for which FINOVA agreed to subordinate its first mortgage liens and security interests to secure repayment of such loan. The facility was subsequently sold to a third party.
Medford, Oklahoma
Flanagan was appointed the receiver for this Oklahoma nursing home in January 2002 in conjunction with a foreclosure proceeding filed by the first mortgage lender in the United States District Court for the Western District of Oklahoma. Flanagan oversaw the marketing and sale of the facility through a foreclosure sale.
United States Bankruptcy Court for the Southern
District of Indiana, Indianapolis Division
Case No. 02-06360-JKC-11
TriNat Health Care, Inc. filed a voluntary chapter 11 petition for relief on April 15, 2002. TriNat leases and operated nine (9) long term care facilities located in Indiana. Flanagan’s client took over the management of the TriNat facilities immediately prior to the filing of the chapter 11 proceeding and, in conjunction therewith, offered to make a debtor in possession loan in the amount of $500,000 available to TriNat. However, shortly following the filing of the proceeding, the State of Indiana implemented another dramatic Medicaid rate decrease that reduced the overall annual Medicaid revenue for these nine (9) homes by approximately $2,800,000. Once it was determined that TriNat would be unable to reorganize its affairs, primarily since TriNat leased its facilities and the landlord was unwilling to make the rent concessions necessary to allow the facilities to operate profitably, the Court authorized the rejectio of the leases for the nine (9) facilities effective as of June 30, 2002, thereby preserving the ability of TriNat to maximize its distributions to its creditors.
United States Bankruptcy Court for the
Southern District of Texas – Houston Division
Case No. 01-35491-H5-11
On January 28, 2002, the Bankruptcy Court confirmed the Plan of Reorganization filed by the Debtors in the above-referenced case. In accordance with the confirmed Plan, all of the Debtors’ assets were transferred into Autumn Hills Health Foundation. Flanagan was nominated by the Official Unsecured Creditors’ Committee, and approved by the Bankruptcy Court, to serve as one of the directors of Autumn Hills upon the confirmation of the Plan. Following confirmation, Flanagan was elected Chairman of the Board and oversaw the initial operation of the Debtors’ twelve (12) long term care facilities. After operating the facilities for a period of time, it became apparent that the facilities would not be able to make their debt payments under the plan, and Flanagan (as the sole remaining officer and directors as all other officers and directors had resigned) oversaw the transfer of control of the facilities back to the lender, followed by the liquidation of Autumn Hills’ remaining assets.
United States Bankruptcy Court for the
District of Delaware
Case Nos. 00-113 (MFW) through 00-214 (MFW)
On December 1, 2002, Flanagan assisted LaSalle Bank National Association (formerly known as LaSalle National Bank), as Trustee under that certain Pooling and Servicing Agreement effective as of December 1, 1995, relating to the RMF Commercial Mortgage Pass-Through Certificates, Series 1995-1, in taking back three (3) long term care facilities located in Illinois from Mariner in conjunction with Mariner’s chapter 11 bankruptcy proceeding. Flanagan’s client thereafter purchased the facilities from the lender.
Lompoc, California
On February 6, 2003, Flanagan was appointed as the receiver of the Lodge at Lompoc, a 130 bed assisted living facility located in Lompoc, California. Flanagan’s appointment was requested by CRIIMI MAE Services, L.P., as the subservicer for holder of the first mortgage loan which is the subject of a pending foreclosure action. Flanagan negotiated the sale of the facility to a third party at a price which was in excess of the appraised value of the facility.
Topeka, Kansas
On April 14, 2003, Flanagan was appointed as the receiver for Meadowbrook Manor of Topeka, L.P., which owns a 95 bed skilled nursing facility located in Topeka, Kansas. Flanagan’s appointment was requested by Beal Bank, which was the holder of a HUD insured loan which it purchased from HUD. The home was thereafter sold through a foreclosure action.
Overland Park, Kansas
On June 7, 2003, Flanagan’s client was appointed as the receiver for the Grand Court II – Overland Park, which is a 100 unit assisted living facility located in Overland Park, Kansas. The appointment of Flanagan’s client was arranged by The Mission Bank, which held the first mortgage loan in a pending foreclosure action. Flanagan assisted in negotiating the resolution of several issues involving the transition of operations from Brookdale Living Communities and the issuance of a provisional license by the Kansas Department of Aging. Flanagan thereafter assisted Tutera in the purchase of this facility from The Mission Bank.
Farmington, Missouri
On December 13, 2004, Flanagan was appointed by the Missouri Department of Health and Senior Services, Division of Senior Services and Regulation, to serve as the receiver for this facility due to the insolvency of its licensed operator. On January 12, 2005, the Coles County Circuit Court discharged Flanagan as the receiver following Flanagan’s completion of a transaction to turn the facility back to the landlord, who had a pending licensure application on file when Flanagan was appointed.
Ormond Beach, Florida
On March 30, 2005, the Circuit Court of the Seventh Judicial Circuit, Volusia County, Florida, in an action styled: TC10 Grantor Trust, Plaintiff, vs. Independence Court of Ormond Beach Associates, L.P., et al., Defendants., Case No. 2005-30383-CICI appointed Flanagan as the receiver for Independence Court of Ormond Beach, an assisted living facility located at 535 North Nova Road, Ormond Beach, Florida 32174. Flanagan was appointed as the receiver for the Facility at the request of TC10 Grantor Trust, who is the holder of the first mortgage indebtedness encumbering the Facility.
Shaker Heights, Ohio
On October 3, 2005, the Court of Common Pleas for Cuyahoga County, Ohio, in an action styled: TC14 Grantor Trust, Plaintiff, vs. Somerset Point, L.P., et al., Defendants., Case No. CV 05 573748, appointed Flanagan as the receiver for Somerset Point Assisted Living and Nursing Home, a skilled nursing and assisted living facility located in Shaker Heights, Ohio. Flanagan was appointed as the receiver for the Facility at the request of TC14 Grantor Trust, who is the holder of the first mortgage indebtedness encumbering the Facility.
Overland Park, Kansas
On June 15, 2006, the District Court for Johnson County, Kansas, in an action styled: TI – HUD Investments I, L.L.C., Plaintiff, vs. The Rose Estates, L.L.C., Defendant, Case No. 06CV04595 – Division 7, appointed Flanagan as the receiver for The Rose Estates Assisted Living Facility. The Receiver was appointed at the request of TI – HUD Investments I, L.L.C. The Facility was later sold at a foreclosure sale.
United States Bankruptcy Court for the Central
District of California, Los Angeles Division
Case No. LA 07-12312-EC
On March 22, 2007, Pleasant Care Corporation, SNF Properties Incorporated, PCC Health Services, Inc., Atlas Care Enterprises, Inc., and Ember Care Corporation each filed voluntary chapter 11 petitions for relief. The Debtors are the second largest operator of skilled nursing facilities in the State of California, currently lease and operate 27 skilled nursing facilities and 3 assisted living facilities, with annual revenues in excess of $200,000,000. Effective as of April 1, 2007, Flanagan’s client (Joseph C. Tutera), at the insistence of the secured creditors, unsecured creditors and regulatory authorities, was installed as the President and COO of the Debtors in accordance with a Retention Agreement executed by Manny Bernabe, the Debtors’ principal shareholder. Pursuant to the terms of the Retention Agreement, Mr. Tutera was vested with full and complete control over the Debtors’ business operations, including having exclusive control over, and decision-making power with respect to, the Debtors’ day-to-day business operations and the sale, assignment or transfer of any assets or Facilities of the Debtors. Flanagan was actively involved in supporting Mr. Tutera in all aspects of operating the business and selling or disposing of various of the assets.
United States Bankruptcy Court for the Southern
District of Indiana, New Albany Division
Case No. 05-92641-BHL-11
Robert E. Lee, LLC filed a voluntary chapter 11 petition for relief on July 8, 2005. Robert E. Lee, LLC owns and operates Landmark Nursing and Rehabilitation Center, a 142 licensed bed skilled nursing facility located in New Albany, Indiana. On January 26, 2007, Elliott D. Levin was appointed as the Chapter 11 trustee was appointed to serve in the case. On January 29, 2007, the Chapter 11 Trustee engaged Walnut Creek (an affiliate of Tutera) as the oversight manager and consultant for the facility, which engagement was arranged by Flanagan. The facility was sold to a third party purchaser at a bankruptcy court sale in July 2007.
United States Bankruptcy Court for the
District of Connecticut, New Haven Division
Case No. 07-32720
Haven Eldercare, LLC and its affiliates filed for chapter 11 relief in November 2007. Haven was the one of the largest operators of skilled nursing facilities in New England, having owned or leased and operated 25 skilled nursing facilities. In July 2008, Flanagan assisted Tutera and CapitalSource Finance, LLC in purchasing four (4) long term care facilities located in Connecticut and New Hampshire from Haven’s bankruptcy estate and following such purchase, Tutera thereafter began leasing and operating the facilities through December 2010, at which time they were sold by CapitalSource Finance, LLC to an unrelated third party purchaser.
Spartanburg County, South Carolina
On January 20, 2009, the Court of Common Pleas for Spartanburg County, South Carolina, in an action styled: The Palmetto Bank, Plaintiff, vs. Spartanburg Senior Living, LLC, et al., Defendants. Case No. 2008-CP-42-6355, appointed Michael F. Flanagan as the Receiver pursuant to S. C. Code § 15-65-10(1) et seq., over: (a) Spartanburg Senior Living, LLC; and (b) the senior living community commonly known as Park Place located in Spartanburg County, South Carolina. The Receiver was appointed as the receiver at the request of The Palmetto Bank. The Facility was later sold to the note holder at a foreclosure sale.
Spartanburg County, South Carolina
On August 3, 2010, the Court of Common Pleas for Spartanburg County, South Carolina, in an action styled: The Palmetto Bank, Plaintiff, vs. Summer Place Assisted Living, LLC, et al., Defendants. Case No. 2010-CP-42-1740, entered an Order appointed Michael F. Flanagan as the Receiver over the senior living community commonly known as “Summer Place Assisted Living” located 916 Wesley Court, Boiling Springs, South Carolina 29316, effective as of September 4, 2010. The Receiver was appointed as the receiver at the request of The Palmetto Bank. The Facility was later sold to the note holder at a foreclosure sale.
Wichita, Kansas
On September 2, 2011, the Eighteenth Judicial District Court for Sedgwick County, Kansas, in an action styled: Shawn Sullivan, Secretary of the Kansas Department on Aging, Applicant, vs. Kansas Healthcare Leasing, Inc., d/b/a Wichita Nursing Center, Respondent., Case No. 11 CV 3086, entered an Order appointing Shawn Sullivan, Secretary of the Kansas Department on Aging, as the duly appointed receiver for Wichita Nursing Center, a 70 bed skilled nursing facility located at 2840 S Hillside Street, Wichita, KS 67216-2544. The Receiver engaged Flanagan as a consultant and business advisor to the Receiver to assist the Receiver in dicharging his duties and responsibilities as Receiver. Flanagan and the Facility’s manager closed down the Facility and relocated all of the residents to other long term care facilities in the Wichita area within approximately 45 days after being appointed.
Onaga, Kansas
On May 12, 2014, the Second Judicial District Court of Pottawatomie County, Kansas, in an action styled: Shawn Sullivan, Secretary of the Kansas Department for Aging and Disability Services, Applicant, vs. Deseret Health and Rehab at Onaga, LLC, d/b/a Deseret Nursing & Rehabilitation at Onaga, Respondent., Case No. 14-CV-34, entered an Order appointing Shawn Sullivan, Secretary of the Kansas Department of Aging and Disability Services, as the duly appointed receiver for Deseret Nursing & Rehabilitation at Onaga, a 46 bed skilled nursing facility located at 500 Western Street, Onaga, Kansas 66521. The Receiver engaged Flanagan as a consultant and business advisor to the Receiver to assist the Receiver in dicharging his duties and responsibilities as Receiver. The Facility was ultimately sold to a new qualified operator.
Wichita, Kansas
On May 4, 2015, the Second Judicial District Court of Sedgwick County, Kansas, in an action styled: Kari M. Bruffett, Secretary of the Kansas Department for Aging and Disability Services, Applicant, vs. Deseret Health and Rehab at Woodlawn, LLC, Respondent., Case No. 15-CV-1123, entered an Order appointing Kari M. Bruffett, Secretary of the Kansas Department of Aging and Disability Services, as the duly appointed receiver for Deseret Health and Rehab at Woodlawn, a skilled nursing facility located at 1600 South Woodlawn, Wichita, Kansas 67218. The Receiver engaged Flanagan as a consultant and business advisor to the Receiver to assist the Receiver in dicharging her duties and responsibilities as Receiver. The Facility was sold to a new qualified operator eighty (8) days following the appointment of the Receiver.