Lifecare, Concordia both submit bids for the Covenant
Two separate entities have submitted formal bids to the U.S. Bankruptcy Court for the purchase of the Covenant at South Hills, meeting the Court’s Aug. 24 deadline for all such bids.
Lifecare of the South Hills, LLC, an affiliate of West Virginia-based The Orchards at Foxcrest, has secured financing and submitted its bid for $17 million, said Scott Fox, CEO of Foxcrest, while Concordia Lutheran Ministries has submitted an all-cash bid of $15 million.
Covenant, the B’nai B’rith-sponsored senior living facility located in Mt. Lebanon, filed for bankruptcy protection last January after its bondholders filed a foreclosure action.
Neither the Jewish Association on Aging, nor B’nai B’rith, nor any other Jewish agency, has submitted any bids to purchase the Covenant.
Concordia is a nonprofit operator with a substantial cash endowment, while Foxcrest is a for-profit corporation that will be borrowing millions to finance the deal.
Foxcrest has secured a bridge loan — a type of interim financing until permanent financing is in place — from the current bondholders of the Covenant, primarily U.S. Bank, said Fox.
After confirming that Concordia had submitted its all-cash bid of $15 million, Fox said, “I don’t know what that means to us.”
The auction for the Covenant is scheduled for Sept. 3.
“It’s a hurry up and wait game now,” said Fox.
(Toby Tabachnick can be reached at email@example.com)