A reorganization plan for Eagle Senior Living will reduce the company’s debt by approximately $40 million and promises $28 million in new financing, according to the operator’s attorney. The U.S. Bankruptcy Court for the District of Delaware approved the plan Wednesday, McKnight's Senior Living reported. The Wilmington, Del.-based company operates independent living, assisted living and memory care communities in Alabama, Colorado, Florida, Minnesota, Ohio, Tennessee and Wisconsin. Eagle initiated a voluntary chapter 11 process in January in a move to strengthen its financial structure and provide flexibility to make necessary capital improvements. Parent company American Eagle Lifecare Corp. and management company Greenbrier Senior Living were not included in the filing. “The debt restructuring caused the company significant debt relief,” said attorney David Gordon of Polsinelli, adding that the Eagle began restructuring negotiations 11 months ahead of the Jan. 14 Chapter 11 filing. The company’s bond debt is broken into three tranches, he said. The A tranche was $171 million, the B was $36 million and the C was $24 million. The A bond debt will be reissued at the original $171 million, but with lower interest rates and amortization to push the payments into the future for the time being, the attorney said. The interest rate was reduced to 5%, with interest-only for payments for the first four years. The maturity of the debt has been extended to 35 years.
