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Chehalem Springs declares bankruptcy State will appoint a patient care ombudsman to oversee operations at the Newberg facility David Sale January 02, 2009 Business woes have increased for a local assisted living facility as the owners of Chehalem Springs Retirement Community have filed for bankruptcy in the wake of a foreclosure notice. Owners Jon and Kristen Harder and Darryl and Carol Fisher received a foreclosure notice Dec. 17 from the Bank of Clark County, from which they obtained a $10.2 million construction loan in April 2006. Bank officials stated the principal on the loan has yet to be repaid, despite a one-year extension. Chehalem Springs' owners filed for Chapter 11 bankruptcy two days later in U.S. Bankruptcy Court in Portland, a move which will allow them to reorganize or liquidate the business while hopefully staving off foreclosure proceedings. As a condition of the bankruptcy filing, the federal court will appoint a patient care ombudsman to oversee operations at the facility, located at the corner of Hayes and Brutscher streets. That ombudsman will likely be a case worker with the state Department of Human Services, but as DHS spokeswoman Cary Greenwood said, "While DHS is engaged in an ongoing dialogue with Sunwest management, we cannot comment on individual facility situations. ... Clients in all licensed facilities have a significant amount of contact with DHS local offices, as well as with advocates such as the Long-term Care Ombudsman's Office. Whether or not a facility is in bankruptcy has no impact on our oversight mandates." A similar foreclosure notice was made in November against McMinnville's Osprey Court Memory Care Community, which is also owned by Harder and Fisher, the president and chief operating officer, respectively, of the Sunwest retirement home chain. Salem-based Sunwest has itself been on financially shaky ground since early fall; it presently owes around $400 million to some 1,200 investors nationwide. Formed in 1991 with three retirement homes, Sunwest grew rapidly to own nearly 275 retirement homes nationwide, including 51 in Oregon, through a network of business partnerships. That growth was fueled by lending and Sunwest fell victim to the present financial crisis, which lead to ballooning debt on one hand and a decline in its customer base on the other, as seniors elected not to sell their current homes. The bankruptcy hearing will begin Jan. 7 in Portland.

Chehalem Springs declares bankruptcy

State will appoint a patient care ombudsman to oversee operations at the Newberg facility

David Sale

January 02, 2009

Business woes have increased for a local assisted living facility as the owners of Chehalem Springs Retirement Community have filed for bankruptcy in the wake of a foreclosure notice.

Owners Jon and Kristen Harder and Darryl and Carol Fisher received a foreclosure notice Dec. 17 from the Bank of Clark County, from which they obtained a $10.2 million construction loan in April 2006. Bank officials stated the principal on the loan has yet to be repaid, despite a one-year extension.

Chehalem Springs' owners filed for Chapter 11 bankruptcy two days later in U.S. Bankruptcy Court in Portland, a move which will allow them to reorganize or liquidate the business while hopefully staving off foreclosure proceedings.

As a condition of the bankruptcy filing, the federal court will appoint a patient care ombudsman to oversee operations at the facility, located at the corner of Hayes and Brutscher streets.

That ombudsman will likely be a case worker with the state Department of Human Services, but as DHS spokeswoman Cary Greenwood said, "While DHS is engaged in an ongoing dialogue with Sunwest management, we cannot comment on individual facility situations. ... Clients in all licensed facilities have a significant amount of contact with DHS local offices, as well as with advocates such as the Long-term Care Ombudsman's Office. Whether or not a facility is in bankruptcy has no impact on our oversight mandates."

A similar foreclosure notice was made in November against McMinnville's Osprey Court Memory Care Community, which is also owned by Harder and Fisher, the president and chief operating officer, respectively, of the Sunwest retirement home chain.

Salem-based Sunwest has itself been on financially shaky ground since early fall; it presently owes around $400 million to some 1,200 investors nationwide.

Formed in 1991 with three retirement homes, Sunwest grew rapidly to own nearly 275 retirement homes nationwide, including 51 in Oregon, through a network of business partnerships.

That growth was fueled by lending and Sunwest fell victim to the present financial crisis, which lead to ballooning debt on one hand and a decline in its customer base on the other, as seniors elected not to sell their current homes.

The bankruptcy hearing will begin Jan. 7 in Portland.