Claims by residents of a senior living facility for entrance fee refunds are subordinate to a perfected security interest in the property of the company that operates the facility, the Wisconsin Supreme Court has unanimously ruled.
After the Atrium, a senior-living facility, defaulted on debt service payments to a group of bondholders, the facility filed a petition for receivership.
Whether CCRC residency agreements are treated as leases or contracts under state law could impact the recovery of CCRC bonds in the event of the insolvency of the CCRC owner. Some.
Nearly eight percent of the $41 billion in outstanding senior living bonds were in default as of December 2021, with the sector accounting for almost one-quarter of defaulted debt in the muni market, .