Edgemere, the Dallas luxury retirement home that filed for bankruptcy in mid-April, will be permitted to tap $10.1 million in financing to carry it through the end of the year as it reorganizes under court supervision, the Dallas Morning News reported. Bankruptcy Judge Michelle Larson last week approved the emergency funding request from the operators of the 504-unit community that allows seniors to age into different levels of care without moving, according to court documents. The judge also ruled that Edgemere doesn’t need to make immediate rent payments to its landlord, InterCity Investments, but must set aside those funds in an escrow account to prove it has the money. Judge Larson said that Edgemere seems to have a genuine interest “to ensure liquidity and success during the reorganization.” Edgemere lost $30 million in 2021 partly due to falling occupancy rates. Its bankruptcy filing said its assets and liabilities are both between $100 million and $500 million, and its creditors total as many as 5,000, including families whose relatives paid hefty deposits to move into Edgemere. The judge was well aware that the relationship between the retirement home and its landlord has soured. The landlord is upset that Edgemere has gotten itself into financial trouble, due to increased competition in the area, large capital expenses and the COVID-19 impact on move-ins. Edgemere defaulted on rent payments starting last fall before bondholders saved it by paying the rent it had missed. Edgemere is also upset with the landlord, which it has accused of trying to take over the land along with private equity firm Kong Capital.
