Secured creditor stops auction for Covenant
The auction of Covenant at South Hills, scheduled to occur this past Monday, was halted by one of the facility’s secured creditors because it was not satisfied with any of the bids it had received for purchase of the property.
Covenant filed for bankruptcy protection last January after having been unable to meet its financial obligations to its creditors since opening in 2002. It is now about to be sold.
But Madison Investment Trust, one of Covenant’s secured creditors, elected to exercise its right to terminate the sale of the B’nai B’rith-sponsored senior living facility in Mt. Lebanon, as it was unwilling to accept any of the purchase offers on the table.
While four prospective purchasers submitted bids to buy the facility, only one of those bids — that tendered by Concordia Lutheran Ministries — complied with financing and operation requirements, according to George Cheever, attorney for the Residents’ Council of Covenant.
None of the bidders is affiliated with any Jewish organization, and it is
unlikely that B’nai B’rith will retain any sort of advisory role to a new non-Jewish owner.
Concordia is “a not-for-profit organization committed to upholding Christian values while meeting the current and continuing needs of seniors of all beliefs in a safe, secure and caring environment,” according to its Web site.
Many Covenant residents invested in the facility because of its Jewish nature, including its kosher kitchen. With B’nai Brith out of the picture, the facility may lose its Jewish character.
Although Madison Investment Trust has rejected all bids thus far, it is still open to negotiate further with qualified bidders, Cheever believes.
In addition to Concordia, another bidder, Life Care of Pennsylvania, is also interested in purchasing Covenant, and is “trying to put together a proposal,” said Cheever.
A status hearing on the matter is set for Friday, May 15, in U.S. Bankruptcy Court, Downtown.
(Toby Tabachnick can be reached at Tobyt@thejewishchronicle.net.)