Clare Oaks CCRC in Illinois Emerges from Bankruptcy, Plans $5M Improvement Project

BARTLETT, Ill. — Clare Oaks, a continuing care retirement community (CCRC) in the Chicago suburb of Bartlett, has emerged from Chapter 11 bankruptcy with $40 million in reduced debt and plans for a $5 million capital improvement project.

The property opened in 2008, but declared bankruptcy in June 2019. The process reduced its debt from $86 million to $46 million, and also installed a new operator in ER Senior Management IL LLC and a new board of directors led by Julie Boggess.

“The goal of this rigorous process was to reduce the burden of unrealistic long-term debt, an all-too-common phenomenon among CCRCs opened earlier this century, and to infuse fresh capital for a series of improvements,” says Boggess.

The lead bondholders, Lapis Advisors and Amundi Pioneer, also have committed $5 million for capital improvements to be completed in 2021.

Tim Lynch was named as the new executive director of the community.

Clare Oaks provides independent living apartments and cottages as well as a continuum of care for more than 200 residents on its 41-acre campus.