Local retirement facility among 14 filing bankruptcy

In an effort to stave off foreclosures and pay back creditors and investors, a consulting firm has filed bankruptcy on behalf of 14 senior living affiliates managed by Sunwest Management Inc., including Willow Ridge of McCook.

The turnaround consulting firm, Hamstreet and Associates of Portland, Ore., took over Sunwest Management and filed the Chapter 11 bankruptcies Tuesday. Jon Harder, founder and chief executive of the Salen, Ore.-based Sunwest, that developed and managed 250 senior living projects, has also filed Chapter 11.

Three other Nebraska senior living facilities were included in the bankruptcy papers: Kearney Senior Living LLC, aka Northridge Senior Living, Seward Senior Lving LLC, aka Heartland Park Senior Living Community and Wayne Senior Living LLC, aka The Oaks Senior Living Community.

Harder's personal bankruptcy was prompted by lawsuits aimed at Harder and other company executives, according to the Journal Statesman of Salem. Hundreds of limited liability companies, backed by groups of individual investors, provided financing to grow the business. But Sunwest borrowed heavily and owed about $2 million in debt secured in real estate.

In Red Willow County District Court on Nov. 3,, Column Financial Inc. of New York, N.Y., sued Willow Ridge, along with 16 other senior living communities and Harder, for defaulting on loans totaling $1.59 million.

Reconstructing efforts by Hamstreet and Associates will attempt to save the most profitable properties and eliminate the worst performing ones, according to a Hamstreet consultant in the Journal Statesman.

Linda Dixon, Willow Ridge administrator, referred questions to the corporate office but said that the McCook facility would not be closing and had high occupancy rates. Messages left at the corporate office were not returned as executives were out of the office until Monday.