Creditors for six nursing homes in western Pennsylvania have resolved a dispute over which one has priority in recouping its loans, thereby paving the way for the continued operation of the facilities, according to the results of a hearing before federal District Judge Kim R. Gibson in Johnstown.
Gibson in March appointed a receiver to oversee the operation of the homes, that included Lakeview Healthcare in Smethport, Ridgeview Healthcare and Rehabilitation Center in Curwensville and a similar facility, Mulberry Healthcare and Rehabilitation Center, in Punxsutawney.
The other homes are located in Aliquippa, Clairton and Scottdale. The home in Clairton however is temporarily closed, according to its web page.
The six nursing facilities, which housed more than 400 residents, were owned by Bonamour Health Group of Clairton.
In 2022, the company borrowed $30.591 million from a Dallas lender, Revere Tactical Opportunities Reit LLC.
Eventually, Bonamour obtained a line of credit from OptimumBank of Fort Lauderdale, Fla., that would serve as “working capital” for the nursing care facilities.
When Bonamour failed to make payments on its loan to Revere in December, January and February, Revere took action to protect its multi-million dollar investment, seeking the appointment of a receiver, or someone to oversee the operation of the facilities.
Gibson, during an emergency hearing in March, named Michael F. Flanagan of Overland Park, Kansas, as the receiver.
Flanagan teamed up with Everest Management Solutions of Brooklyn, the company which now oversees the day-to-day operations of the nursing homes.
As Flanagan worked to maintain the operation of the homes, OptimumBank entered the picture in an attempt to protect its multi-million loan to Bonamour.
The bank sought to intervene, objected to the emergency appointment of a receiver, sought a temporary restraining order and preliminary injunction.
Gibson delayed a hearing on the appointment of a permanent receiver so that Revere could respond to OptimumBank’s legal claims.
Revere opposed OptimumBank’s intervention and opposed its requested injunction.
“It’s worth noting that since (Flanagan’s appointment), the receiver has kept the facilities operating, the residents are safer, and Optimum has received at least one payment of $100,000,” Revere responded.
In contrast, Revere stated, it has made an advance of $850,000 to the receiver.
So, it concluded, while Optimum is taking money, Revere has been acting for the benefits of the receiver, the residents and the facilities.
On Tuesday, Gibson convened a hearing conducted through Zoom that included attorneys for Flanagan, Revere and OptimumBank.
According to the judge’s report of the hearing, Revere and the bank have come up with an agreement with OptimumBank agreeing to dismiss its objections to the process outlined by Gibson, and in return will receive monthly payments from Revere.
Gibson, the report stated, ordered the parties to prepare a written agreement within 10 days and present it to Flanagan, who will have the opportunity to make comments on it.
Gibson intends to wait for comments from the receiver before approving the agreement.
