Nashville Senior Care Successfully Sells Assets Through Chapter 11 Process
Senior Care Provider Used Chapter 11 to Transition Ownership
Nashville, TN – Nashville Senior Care, LLC and its affiliated entities successfully utilized the Chapter 11 bankruptcy process to sell assets and facilitate an ownership transition, ultimately securing a higher sale price for their assets than initially expected.
The sale process began with a stalking horse bid of $41 million and, through a competitive court-supervised auction, resulted in a final sale price of $55 million—highlighting the effectiveness of Chapter 11 as a platform for maximizing asset value.
The case was filed in the U.S. Bankruptcy Court for the Middle District of Tennessee in Nashville, with Judge Charles M. Walker presiding.
Financial Challenges Lead to Chapter 11 Filing
Nashville Senior Care operated a network of senior living facilities across Florida, Tennessee, and Ohio. Like many in the industry, the company faced financial distress due to declining occupancy rates, increased operational costs, and the long-term effects of the COVID-19 pandemic.
To address these challenges, the company filed for Chapter 11 bankruptcy protection in August 2023, seeking to restructure its obligations and facilitate a structured asset sale.
Competitive Bidding Process Yields Higher Sale Price
As part of the sale strategy, Houlihan Lokey was retained as investment banker for the Debtors, managing the marketing and sale process to attract competitive bids.
Initially, the Debtors secured a stalking horse bid from Cascasis, LLC for $41 million. However, the structured auction process encouraged additional interest, ultimately resulting in a final sale price of $55 million—a significant increase over the initial bid.
Court Approval and Regulatory Clearance Finalize the Sale
The bankruptcy court approved the sale and the transaction closed following regulatory approvals. This ensured:
Continuity of operations for the senior living facilities
Job preservation for employees
Uninterrupted care for residents
Maximized recovery for creditors
Confirmation of Liquidating Plan in June 2024
Following the successful asset sale, the Debtors' liquidating plan was confirmed by the court in June 2024. This allowed for an orderly distribution of sale proceeds to creditors and concluded the Chapter 11 restructuring process.
Key Professionals in the Bankruptcy Case
Several legal and financial professionals played pivotal roles in guiding the case through the Chapter 11 process:
Debtors’ Co-Counsel: McDonald Hopkins LLC and EmergeLaw, PLC
Debtors’ Investment Banker: Houlihan Lokey
Creditors’ Committee Co-Counsel: Womble Bond Dickinson LLP and Dunham Hildebrand, PLLC
Counsel to the Bond Trustee: Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Chapter 11 as a Successful Tool to Sell Assets
The Nashville Senior Care bankruptcy case highlights how Chapter 11 can be a powerful tool for businesses looking to transition ownership through a structured and transparent sale process.
By leveraging the bankruptcy sale framework, the company was able to attract competitive bidding, increase the final sale price, and maximize recoveries for stakeholders—demonstrating the effectiveness of a court-supervised transaction.
More Information on the Case
For additional details and access to case documents, visit the official case website hosted by Stretto:👉 cases.stretto.com/nashvilleseniorcare
About EmergeLaw, PLC
EmergeLaw is a boutique law firm that represents small and middle market businesses and their owners in debt workouts, Chapter 11 reorganizations, Subchapter V restructurings, and other proceedings to help them deleverage and reposition for future success. Applying decades of experience and a specialized toolkit, our Nashville business restructuring attorneys help entrepreneurs, family businesses, private equity funded companies, and real estate investors maximize value in ways that many clients find unexpectedly efficient and effective.
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