Six of the seven Petersen Health Care facilities in the Kewanee area were sold in federal bankruptcy court this week to a Chicago-based investment firm that manages more than 300 healthcare facilities in the Midwest.
U.S. Bankruptcy Court Judge Thomas Horan accepted the bid of $116 million from Cascade Capital Partners for all but five of the Petersen facilities that went up for auction. Two banks were the successful bidders for the other five properties.
Included in the Cascade bid were Kewanee Care, Courtyard Village, Betty’s Garden and Royal Oaks Care Center in Kewanee; Courtyard Estates in Galva; and Toulon Health Care Center.
A seventh Petersen property in this area, Courtyard Estates in Kewanee, is among eight Petersen facilities now being managed by lender X-Caliber Funding. Those properties were removed from Wednesday’s sale.
Estimates of the value of the nearly 100 facilities owned by Petersen Health Care range from $215 million to $305 million. Court records show that the company has some $295 million in debt.
According to a published report on Wednesday’s sale, Petersen’s creditors filed 10 objections to the low price offered by Cascade Capital for the facilities. Nine of those objections were settled prior to the sale, and Judge Horan overruled the tenth on Wednesday.
