Texas Retirement-Community Operator Enters Bankruptcy
A New Braunfels, Texas-based nonprofit company that provides housing and health care to more than 300 residents and patients has sought bankruptcy protection, the San Antonio Express-News reported. Eden Home Inc., which does business as EdenHill Communities, filed chapter 11 last on March 16 after defaulting on about $52.6 million in bonds used to finance construction of 103 apartments, a health center and other improvements. An agreement with bondholders to delay a foreclosure expired, prompting them to direct the bond trustee to “exercise remedies,” Eden Home CEO Laurence Dahl said in a court filing accompanying the bankruptcy petition. The bondholders hold a lien against Eden Home’s real estate and personal property. Dahl blamed construction defects and delays for Eden Home’s financial troubles. It is mired in litigation with the contractor. Eden Home has yet to file schedules of all of its assets and liabilities, but reported both categories are in the range of $10 million to $50 million.
