Nursing facility operator Petersen Health Care filed for reorganization Wednesday in U.S. Bankruptcy Court in Delaware, citing between 5,000 and 10,000 creditors in its petition.
The Peoria, Illinois-based company, which operates 62 nursing homes in Illinois and Missouri, listed assets between $100 million and $500 million in its Chapter 11 filing and between $100 million and $500 million in liabilities.
Related: Bankruptcies mount in troubled nursing home industry
Petersen Health Care has secured $45 million in debtor-in-possession financing, subject to court approval, to fund operations and ensure adequate working capital as it restructures, the company said in a news release.
“Petersen will operate as usual, and our team remains committed to continuing to provide first-rate care for our residents,” David Campbell, the company’s chief restructuring officer, said in the release.
Nursing home bankruptcies have been on the rise as operators face a worker shortage, rising labor costs and a federal staffing mandate. Last year was the most active year for healthcare bankruptcies, with senior care and pharmaceutical companies accounting for half of bankruptcies of more $10 million in liabilities, according to Gibbins Advisors, a healthcare restructuring and advisory firm.
