Christian Horizon files for bankruptcy under Chapter 11, will continue operations during restructuring

Joining a growing number of struggling senior living and care providers, Midwest Christian Villages, doing business as Christian Horizons, on Tuesday filed for reorganization under Chapter 11 bankruptcy.

Chapter 11 bankruptcies in long-term care and healthcare reached a multiyear high in the first quarter, according to the Polsinelli-TrBK Distress Indices Report, published in May.

St. Louis-based Christian Horizons said it is committed to continuing operations throughout the restructuring process; the company’s investment bank has been and continues to solicit and receive bids from going-concern buyers in a marketing process.

“Christian Horizons’ teams have played an important role in serving and supporting older adults for over 60 years,” CEO Kate Bertram said in a statement Tuesday. “We are grateful for the opportunity to have served so many residents and families in the region.”

The not-for-profit, faith-based organization owns and operates a portfolio of seven life plan communities and five stand-alone communities offering a mix of independent, assisted and supportive living; memory care; skilled nursing; and short-term rehabilitation. 

According to court records, as of Monday, the company had approximately $75 million in outstanding debt. July 10, the trustee of the bonds, UMB Bank NA, “accelerated the obligations and setoff amounts in trustee-held funds and accounts against such accelerated obligations.”

COVID-19 marked the beginning of Christian Horizons’ financial woes, the provider said, adding that its communities lost 25% to 30% of new residents and short-term rehabilitation stays for several months during the height of the pandemic.

Like many other providers, the company experienced staffing shortages. 

“With the simultaneous shortage and spike in inflation, Christian Horizons’ labor and other costs have increased by millions of dollars since 2020,” the organization said. “While the market demand for services for older adults will continue to increase, clinicians available to work will continue to be in short supply.”