Health Care and Senior Living Facilities and the Unsecured Creditors: Recovery is a Priority

Cullen and Dykman’s insolvency team, led by partners Michelle McMahon, Elizabeth Aboulafia, and Michael H. Traison, and associate Kyriaki Christodoulou, are representing the Official Committee of Unsecured Creditors in the Midwest Christian Villages cases pending in bankruptcy court in St Louis, Missouri.  Yet another of the many recent health care, senior living and convalescent home bankruptcies, the challenges of getting value for unsecured creditors is great.  In addition to bond holders and secured creditors, claims of trade creditors, personal injury judgment creditors and residents who have paid large “entry fees” are present in such cases.  Requiring “thinking outside the traditional box”,  the Committee and it’s professionals are charged with the burden of protecting those creditors not holding collateral to ensure their payment. The role of the Committee is vital to Chapter 11 cases embodying clashes of many interests. 

The members of the creditors committee are representatives of all unsecured creditors, and their own particular interests must not be applied or considered in the decision-making process. The committee works closely with its legal counsel and its financial advisors in its quest to find value for the unsecured creditors.

About Cullen and Dykman

Cullen and Dykman (www.cullenllp.com) has been providing legal services to institutional clients since 1850. The firm represents a wide range of clients, including banks and other financial institutions, energy, telecommunications and water companies, construction companies, insurers, educational institutions, religious organizations, and not-for-profits. With over 190 attorneys in seven offices located throughout the Northeast and Mid Atlantic regions, Cullen and Dykman is strategically positioned to meet the changing needs and demands of our clients.