Indianapolis – On June 28, Peabody Retirement Community filed a voluntary Chapter 11 restructuring case in the U.S. Bankruptcy Court for the Southern District of Indiana. The filing was the result of extensive negotiations, culminating in an agreement with holders of a majority of outstanding bonds, which will result in an exchange for new bonds. This restructuring will permit Peabody to fulfill its goal of payment in full to all other creditors and enhance its financial strength to further benefit its residents and employees. Peabody’s Chapter 11 counsel is Katz & Korin, PC.
The bonds, originally issued in August 2002, were primarily used to fund the construction of a 144-bed skilled nursing center, a 48-unit memory care center and a 73-unit assisted living facility at the North Manchester retirement community. With 192 health centers and memory care beds and 181 independent and assisted living units, Peabody provides a continuum of care and serves more than 285 residents. Operations will continue as normal throughout the restructuring process.
“In this challenging economic climate, Peabody has reviewed, and continues to review, the expanding needs of our residents, as well as our own financial and operational processes,” said Jeff Jarecki, executive director of Peabody Retirement Community. “The restructuring will enable us to remain a vibrant and growing organization, serving our residents and their families for years to come.”
As Wabash County’s second-largest employer with more than 300 employees, Peabody has served the community and its residents for 82 years. It recently celebrated the grand opening of the new Billie Jane Strauss Wellness Center through generous support from the Strauss family and other area donors. The Peabody Home Foundation led the fundraising campaign for this project several years ago.