VA UM Homes WindsorMeade Campus Emerges From Chapter 11 in only 92 Days
RICHMOND, VA – June 3, 2013 — Virginia United Methodist Homes of Williamsburg, Inc., known as WindsorMeade of Williamsburg, a continuing care retirement community in James City County, Virginia, has closed on the financial transactions provided for in its consensual Chapter 11 plan of reorganization, including payment of agreed-upon amounts to its bondholders.
WindsorMeade, a not-for-profit organization, is sponsored by Virginia United Methodist Homes, Inc. (VUMH). No other VUMH communities are affected by the reorganization.
Early in the restructuring process, WindsorMeade reached agreement with its banks and a majority of its institutional bondholders, allowing the reorganization plan to move swiftly through the courts. WindsorMeade filed its Chapter 11 petition on March 1, 2013, and the plan of reorganization was fully implemented as of May 31, 2013, a total of only 92 calendar days from filing to completion.
“We are pleased that WindsorMeade has emerged from reorganization in such a short period of time,” said Christopher P. Henderson, WindsorMeade’s president. “This speedy resolution is a testament to strong partnerships with our lenders and a collective interest in the well-being of WindsorMeade’s residents.”
During the reorganization, WindsorMeade provided uninterrupted services and care to its residents. Along with a significant reduction of its overall debt, the restructuring plan facilitates future financing for the expansion of WindsorMeade’s health services facilities, with construction expected to begin in 2014.
WindsorMeade began full-service operations in June 2008 during the height of the housing market decline and has had difficulty reaching its projected occupancy, which has resulted in the need to restructure its long-term debt obligations. The initial financing for the community used tax- exempt municipal bonds; the newly approved reorganization plan will continue to utilize those restructured bonds as a financing tool.
“With the restructuring process now behind us, we will focus on the construction of WindsorMeade’s expanded Health Care Center and continuing to attract new residents to our beautiful community,” said Henderson.