River Birch Living, Springfield, Illinois

Midwestern Nonprofit Operator Christian Horizon Files for Chapter 11 Bankruptcy

by Jeff Shaw

ST. LOUIS — Midwest Christian Villages, a St. Louis-based operator of Christian Horizons-branded seniors housing communities, has filed for reorganization under Chapter 11 bankruptcy.

The company operates 12 communities in Illinois, Indiana, Missouri and Iowa. The nonprofit, faith-based organization owns and operates a portfolio of seven life plan communities and five standalone communities offering a mix of independent, assisted and supportive living; memory care; skilled nursing; and short-term rehabilitation.

Chapter 11 bankruptcies in long-term care and healthcare reached a multi-year high in the first quarter, according to the Polsinelli-TrBK Distress Indices Report, published in May.

The company will continue operations throughout the restructuring process. The company’s investment bank continues to solicit and receive bids from going-concern buyers.

“Christian Horizons’ teams have played an important role in serving and supporting older adults for over 60 years,” says CEO Kate Bertram. “We are grateful for the opportunity to have served so many residents and families in the region.”

According to court records, as of Monday, the company had approximately $75 million in outstanding debt. July 10, the trustee of the bonds, UMB Bank NA, “accelerated the obligations and setoff amounts in trustee-held funds and accounts against such accelerated obligations.”

COVID-19 marked the beginning of Christian Horizons’ financial woes, the provider said, adding that its communities lost 25 percent to 30 percent of new residents and short-term rehabilitation stays for several months during the height of the pandemic.

Like many other providers, the company experienced staffing shortages. “With the simultaneous shortage and spike in inflation, Christian Horizons’ labor and other costs have increased by millions of dollars since 2020,” the organization said. “While the market demand for services for older adults will continue to increase, clinicians available to work will continue to be in short supply.”

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