Virginia Retirement Home Leaves Bankruptcy With Clean Bill of Health
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Virginia Retirement Home Leaves Bankruptcy With Clean Bill of Health

October 22, 2012

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A giant retirement community in Daleville, Virginia, is leaving its Chapter 11 bankruptcy with a clean bill of financial health, according to a report from the Roanoke Times.

Sources say The Glebe, a comprehensive retirement home for seniors who need continuing care, had its proposed reorganization plan approved by a bankruptcy judge in Roanoke.

Following that news, a state commission allowed The Glebe to begin accepting entrance fees from new residents, and the community is embracing its life after bankruptcy.

In a press release, The Glebe, which is owned by parent company Virginia Baptist Homes, thanked its residents for supporting it during its troubling financial period, and expressed excitement for its "new era."

The country’s recent economic troubles took a terrible toll on retirement homes across the country, as lost retirement funds caused by the stock market’s collapse forced many seniors to postpone their entry into continuing care facilities.

The Glebe was no exception, and was particularly vulnerable to the economic crisis because it opened its doors in 2005, just a few years before seniors saw their retirement accounts battered by the stock market’s untimely troubles.

As a result of the financial disaster, The Glebe suffered from an unexpectedly low occupancy rate for its apartments, cottages, and assisted living center after it opened for business.

In addition, the retirement community was also plagued by construction delays and a weak housing market, which forced many seniors to remain in their homes.

In June 2010, less than five years after it opened, The Glebe filed for Chapter 11 bankruptcy, which allowed it to continue operating while it created a debt repayment plan to appease its creditors.

Company officials appear very pleased with their decision to file for bankruptcy, and recently told local sources that filing for debt relief has given it a "much stronger financial foundation, which will set the community on a path for continued success in the future."

Today, the 65-acre facility has new hope for future success, and it will be boosted by an additional $2 million in financing that it received from its parent company as part of the reorganization plan.


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