Erickson Retirement Communities LLC said it has emerged from bankruptcy after it received court approval to be acquired by Redwood Capital Investments LLC for $365 million.
The Catonsville, Md., senior assisted living facility operator announced its purchase on Friday, following its voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the Northern District of Texas in October 2009. As part of its auction process, the company was required to secure agreement from a majority of its creditors by April 30 in order to complete the purchase by Hanover, Md., distressed investment firm Redwood Capital.
"It was essential that this transaction and reorganization be completed in an expeditious manner to preserve the rights of the residents," said Thomas Califano, a vice chairman at DLA Piper, in a press release.
DLA Piper attorneys Califano and Jeremy Johnson provided counsel to Erickson, while Alvarez & Marsal managing director Guy Sasone served as the company's chief restructuring officer.
Erickson, whose 20 communities are home to more than 23,000 residents spread between 11 states, selected Redwood Capital as its stalking horse bidder when it filed for bankruptcy protection under case No. 09-37010.
Houlihan Lokey banker Matt Niemann managed the company's court-supervised auction, which was approved by Judge Stacey Jernigan.
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