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Resources for Team Members and Prospective Team Members
REVISED ON 7/5/2022
As we work through the Chapter 11 financial restructuring process that we initiated in April, our residents remain our top priority. In June, we secured several wins in our case – including approval from the Bankruptcy Court for $10.1 million in financing – which will carry us through the end of the year as we work to strengthen our financial foundation. As we proceed through our Chapter 11 process, please know that the long-term success of Edgemere and the best interests of our residents and team members remain our highest priority. We ask that you continue providing our residents the high-quality care and services you have always delivered. As we noted at the beginning of this process in April, community operations should continue uninterrupted. We are working collaboratively with all stakeholders in our Chapter 11 case with the goal of completing this process in a timely fashion.
This process does NOT mean Edgemere is going out of business. Chapter 11 is a financial tool that will provide us the opportunity to rebuild Edgemere’s financial strength to work toward long-term success and sustainability while – most importantly – allowing us to continue operations as usual for the community. If you have any additional questions, or receive a question from a resident or family member that you do not feel equipped to answer, please direct them to your supervisor or a member of our leadership team – they are always here to help. In addition, please direct all media inquiries to EdgemereCommunications@fticonsulting.com.
Below you will find some frequently asked questions (FAQs) that address important topics that are likely top of mind.
If you have any other questions beyond what is included in the FAQs, please reach out to our Executive Director, John Falldine.
TEAM MEMBER FAQ
Chapter 11 is a section of the U.S. Bankruptcy Code that allows organizations to operate as usual and maintain commitments to stakeholders while addressing financial challenges. Many well-known companies and senior living communities have filed for Chapter 11 protection and emerged as healthier companies on the other side.
This process is very different from what you might think of when you hear the word “bankruptcy” – it does not mean that Edgemere is going out of business. The legal process of Chapter 11 offers communities like Edgemere protection to operate without interruption as we work to resolve financial challenges. This means Edgemere can maintain our industry-leading health center, unique amenities, and beautiful campus.
Edgemere is negotiating with its other stakeholders on a financial restructuring plan that will provide the community with a healthier, more sustainable financial future. Through this process, Edgemere is confident that it will gain long-term financial flexibility and stability by achieving a permanent resolution with its financial stakeholders regarding the future of its capital structure, allowing it to serve the best interests of current and future residents.
We are not the only senior living community to run into financial hardships in the past few years. Like many others, we have taken significant strides to improve upon our financial structure to be in the place for our current and future residents to enjoy a long-term sustainable community and take part in life-enriching activities they love. In early 2021, we began discussions with our stakeholders intended to reach a consensual resolution among all parties to strengthen the community’s financial position and build a sustainable future.
Last year, we entered into substantive discussions with the intention of improving our financial position. These discussions resulted in an initial forbearance agreement late last year, and on March 7, 2022, we announced a new forbearance agreement with our bondholders. The forbearance gave us some much-needed breathing room—but, ultimately, was a temporary measure. We strongly believe that by filing for Chapter 11 now, we will holistically work to strengthen our financial structure and meet all go-forward commitments to all stakeholder groups throughout the process.
Given occupancy remains the most important factor to Edgemere’s financial health, we have revamped our marketing and sales processes to address the growing competitive market. We continue to put all of our support behind our sales team to grow our occupancy. Edgemere led Lifespace move-ins with 48 in 2021, which we expect to continue in 2022.
The COVID-19 pandemic hit many senior living communities hard, and Edgemere is not the only senior living community to run into financial hardships in the past few years. In the senior living space in particular, there are many communities that have filed for Chapter 11 protection recently, including Amsterdam House (New York), the Buckingham (Texas), California-Nevada Methodist Homes (California), Henry Ford Village (Michigan), Hillside Village (New Hampshire), Inverness Village (Oklahoma), Clare Oaks Senior Living (Illinois), the Barrington of Carmel (Indiana) and AltaVita (California). Throughout their processes, each has been able to continue its resident care and experience while addressing their financial challenges, which is our goal as well.
We are working collaboratively with all stakeholders in our Chapter 11 case with the goal of completing this process in a timely fashion, well-positioned for long-term success and a healthier financial future.
Edgemere does not anticipate any leadership changes as a result of this announcement.
Edgemere has filed a lawsuit against Intercity Investments Inc. and its agent, Kong Capital, alleging claims related to their actions over the last year. We believe this is in the best interest of the community and all stakeholders, and we intend to pursue it vigorously. While we can’t discuss claims in active litigation, the complaint is filed publicly and you can find a copy of it on the KCC website, http://www.kccllc.net/Edgemere, which has all the bankruptcy filings related to Edgemere.
No. You should see no change in your work or responsibilities as a result of today’s announcement. Please continue reporting to work and performing your role as usual.
You should continue reporting to work as usual, and you will be paid on your regular pay schedule. Your hours and shift-scheduling processes should not change as a result of our Chapter 11 filing.
We have filed certain motions with the Bankruptcy Court that will enable us to continue to pay wages, provide health insurance, and honor other team member benefits, including PTO and retirement plans, as usual. These motions are typical in the Chapter 11 process, and we fully expect they will be heard and approved at our first hearing in the next few days. If you are planning to take time off in the coming months, you should follow the normal procedures.
No. Edgemere will remain fully operational during this process. The most important thing you can do is to remain focused on providing our residents high-quality care and services you have always delivered.
We do not anticipate any layoffs as a result of this announcement, and we are continuing to hire for open positions as usual. Nothing that we do would be possible without you. You are the reason our residents feel cared for and engaged, and the work you do is critical to enriching their lives and improving their wellness.
The most important thing for residents to know is that our number one priority is providing them high-quality care and services, and this announcement will not change that. We believe the Chapter 11 process will position us for long-term financial health and success, allowing us to continue to be the pinnacle of senior living for many years to come.
Team members who work directly with residents should have received a set of materials to be used in response to basic inquiries about our announcement. If you have any additional questions, or receive a question from a resident or family member that you do not feel equipped to answer, please direct them to your supervisor or a member of our leadership team – they are always here to help. In addition, please direct all media inquiries to EdgemereCommunications@fticonsulting.com.
We do not anticipate any changes to the leadership structure as a result of our Chapter 11 process. Your reporting structure should remain unchanged.
The long-term success of Edgemere and the best interests of our residents and team members remain our highest priority throughout this process, and we are committed to keeping you updated as there is news to share. In the meantime, please feel free to direct any additional questions you may have to supervisor or a member of our leadership team – they are always here to help.
Additionally, as a team member in our community, you will likely receive mailed legal notices from KCC, a third-party partner supporting the more administrative elements of our Chapter 11 process. We plan to share further information on some of these notices, and more information can be found at http://www.kccllc.net/Edgemere. You can always contact KCC by emailing EdgemereInfo@kccllc.com or calling 310-751-2669 for U.S. calls or 866-967-0269 for international calls for support regarding any related Chapter 11 process questions.
Prospective Team Member FAQ
No. Our community is continuing to look for qualified, compassionate candidates for our open positions.
We expect this process will ultimately make our community stronger and better positioned to serve its residents and be a great employer for many years to come. We have a strong, resilient team that has adapted to the new reality we are facing with the COVID-19 pandemic and has continued to engage our residents in creative and safe ways. Regardless of our restructuring process, now is a great time to join our team
This announcement will not impact the hiring process. If you have any questions about your application, please reach out to our executive director.
We are continuing to operate and pay team members as usual. This means that any new team members who join our community will receive compensation and benefits in line with existing practices.
Edgemere does not anticipate any layoffs as a result of this announcement. We are continuing to hire for open positions as usual.
Please reach out to our executive director with any outstanding questions.
We understand you may still have a few questions and appreciate your concerns for Edgemere throughout this financial restructuring process. Please contact the respective contacts below for more information.
- Edgemere Residents and Team Members: Please reach out to our Executive Director, John Falldine
- Prospective Residents: Please reach out to our Executive Director, John Falldine
- Prior Residents: Please contact your usual Edgemere contact, or call 310-751-2669 for U.S. calls or 866-967-0269 for international calls or email EdgemereInfo@kccllc.com
- Vendors: Please contact your usual Edgemere contact, or call 310-751-2669 for U.S. calls or 866-967-0269 for international calls or email EdgemereInfo@kccllc.com
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