Port Washington’s retirement community, The Harborside, has filed for bankruptcy protection from its creditors under Chapter 11 for the third time in nine years because of a a decline in residents.
The company blamed the lower occupancy numbers, which has reduced needed revenues to pay the facility’s bills, on the stigma associated with its earlier bankruptcy filings and the COVID-19 pandemic.
The list of creditors who have the 30 largest unsecured claims and are not insiders are all residents, whose names have been redacted, for entrance fee refunds, according to documents filed in federal bankruptcy court Wednesday. Overall, the 30 unsecured claims add up to approximately $29 million.
The Harborside, previously known as The Amsterdam at Harborside, recognized 1,000-5,000 creditors in its bankruptcy filing, with estimated assets and liabilities ranging from $100 million to $500 million.
At a March 21 board of directors special meeting, The Harborside leadership said in a resolution that the company has entered into a loan agreement of $9 million “to support The Harborside’s operations and restructuring efforts during its Chapter 11 case.”
The board’s resolution also said the retirement facility has “engaged in arm’s length, good faith negotiations” for a possible sale to New England Life Plan Communities Corp., a nonprofit from Lincoln, Ma., established in 2021.
Blank Slate reached out to The Harborside President and CEO Brooke Navarre and Senior Vice President and General Counsel Pamela Landman, but neither responded for comment by the time of publication.
The nonprofit retirement community at 300 East Overlook last filed for bankruptcy protection June 14, 2021. This case has concluded, according to documents. The Harborside had filed for bankruptcy in 2014 as well.
The Harborside is located on 8.9 acres, providing 329 residential units and a diversity of care and amenities. Units are either one or two bedrooms, including weekly housekeeping services. The community includes a library, fitness center, art studio and beauty salon and barbershop.
The senior facility’s care services include assisted living, memory support, skilled nursing, hospice care and rehabilitation.
“For many seniors, moving into a [continuing care retirement community] is an attractive option because it minimizes the burdens and costs associated with the aging process and ensures that they can remain in place if their medical needs change,” Michael Morton, chief restructuring officer of Amsterdam House Continuing Care Retirement Community, which operates The Harborside, said. “These seniors will often liquidate their homes, liquidate significant assets and/or invest a significant portion of their life savings to become a part of a CCRC like The Harborside.”
For The Harborside to meet its operational, financial and regulatory obligations, the facility relies on its revenues from residents, which have decreased with the shrinking occupancy level, Morton said in the bankruptcy declaration.
Morton also explained that the facility’s 2021 bankruptcy filing was fueled by the COVID-19 pandemic. Harborside has continued to experience “the lingering impact of the COVID-19 pandemic” coupled with rising labor costs and inflation, he said.
