Edgemere Dallas, Lifespace Communities Announce Forbearance Agreement, Ongoing Discussions to Strengthen Financial Position
Edgemere Dallas (“Edgemere” or “the community”) and Lifespace Communities (“Lifespace”), as owner and operator, announced entry into a forbearance agreement with UMB Bank, as indenture trustee (the “Indenture Trustee”) for the Retirement Facility Revenue Bonds (the “Revenue Bonds”), and Intercity Investment Properties, Inc., as lessor (the “Lessor”) dated December 21, 2021 (the “Forbearance Agreement”). The forbearance is intended to provide the time necessary to proceed with ongoing, active discussions towards a consensual agreement among the parties designed to strengthen the community’s financial position for the long term and achieve a more sustainable future.
During the forbearance period, the parties agree to work cooperatively to reach a consensual resolution of the Revenue Bonds and the ground lease. Pursuant to the Forbearance Agreement, the Indenture Trustee and the Lessor have agreed to forbear from exercising any rights or remedies during the forbearance period.
The initial forbearance period is anticipated to be extended to March 31, 2022, subject to satisfaction of certain milestones and further extension by the parties.
The community remains fully operational and continues to provide exceptional care and service to our residents and their families, welcoming new residents each month.
“We are confident that our active and productive discussions with our stakeholders will enable us to strengthen the community’s financial position and build toward a more sustainable future for Edgemere,” said Jesse Jantzen, president and chief executive officer of Lifespace. “This agreement provides the breathing room needed to reach a fair resolution and marks a positive step forward. The best interests of our current and future residents and their families are our top priority and we remain committed to delighting our residents. We take the responsibility with which we have been entrusted seriously and are committed to resolve these financial issues in a manner that will allow current and prospective residents to enjoy the highest standards of quality and care for many years to come.”
Edgemere is represented in this matter by Sidley Austin LLP and FTI Consulting.