The Barrington, a high-end retirement community in Carmel, filed for Chapter 11 bankruptcy protection on January 30th, 2019. The community is owned by Mayflower Communities of Dallas, the entity which filed for the bankruptcy relief. The development has only been open for roughly only six years, making this filing a surprise to many who live in the greater Indianapolis area.
The Barrington is a retirement and assistance community that offers a variety of housing and on-campus care options. Because of the variety of care and assistance types available, members of the community’s needs can differ greatly. The Barrington can assist with changing need-options over time. This type of varied-care environment offers security and freedom which is very attractive to the residents. This type of community is increasingly common throughout the nation. Similar communities are likewise popping up all over the greater Indianapolis area.
What Could This Mean For Residents or Creditors?
The Barrington community has filed for Chapter 11 and is planning on continuing operation. This could preserve the contractual rights and use of certain classes such as current or future residents. Residents or potential residents who have made deposits could have potential problems with their creditor rights. Attorney representation will likely be necessary for any creditor of the Barrington Community to explore any alteration or extinguishment of existing rights.
Will the Barrington Recover?
Although no prediction is fully accurate, the Barrington is a service and real estate based business. This could greatly increase the chances of the Barrington recovering: too much of the business is linked to real estate and attending services. If the Barrington does not recover, it is likely that another service provider will acquire the assets and continue operation. Therefore, the continued operation of some form is very likely. These communities also appear to be in high demand.