Hinckley Allen represented The Prospect-Woodward Home (“Prospect-Woodward”), a nonprofit organization that commenced operations of a senior living facility in 1874. When the Prospect-Woodward Board of Trustees recognized that its facility no longer met the needs of older adults, it engaged us to negotiate a merger with a similarly-situated facility so that the combined endowment funds could be leveraged into a $93 million tax-exempt bond financing to fund the construction of a new continuing care retirement community.

The community is located on a 66-acre campus and consists of 140 independent living units, 61 assisted living units, and 20 nursing care beds. Prospect-Woodward encountered construction defects and financial challenges resulting from opening the facility during the COVID-19 pandemic, resulting in its inability to meet debt service.

Hinckley Allen successfully negotiated a forbearance agreement with bondholders, and completed a sale of the facility to Covenant Living, one of the nation’s largest nonprofit senior living operators, using Chapter 11 bankruptcy proceedings. Hinckley Allen procured regulatory approvals from the New Hampshire Insurance Department and Attorney General, and from the New Hampshire probate court, so that the sale could be consummated within 3 months of the bankruptcy court’s approval of the purchase and sale agreement. We also procured an emergency license for the nursing home administrator while the sale was pending, and successfully defended lawsuits filed by previous residents.

All obligations to residents were satisfied as a result of the transaction.