The state of Maryland has approved a plan to allow the Notchcliff Lifecare Community, whose original developer filed for U.S. bankruptcy court protection in 1988, to be reorganized and operated under new ownership as an independent, not-for-profit community for the elderly.
Under the reorganization plan, the 215-unit community at 11630 Glen Arm Road in Glen Arm will be renamed Glen Meadows and will be owned by CB Properties Inc., a wholly owned subsidiary of Commercial Bank of Harford County.
Its operator will be Presbyterian Senior Services Inc., a non-profit corporation formed by the Presbytery of Baltimore and Presbyterian Homes Inc. of Camp Hill, Pa.
"After two years of negotiations, it looks like Glen Meadows will provide the senior citizens of Maryland with a viable retirement community," Gov. William Donald Schaefer said in a prepared statement. "We are pleased that the [bankruptcy court] trustee was able to move ahead and work out a suitable financial plan."
Attorney Richard Wasserman, the bankruptcy court trustee, said the state's ruling means the property will come out of bankruptcy under new ownership effective Tuesday.
It also gives the new owners and operators a green light to market the property to prospective residents. It currently has about 60 residents.
"This is an example of a successful Chapter 11" reorganization, Mr. Wasserman said.
Last fall, Presbyterian Senior Services obtained preliminary permission from Maryland's Office on Aging and the U.S. bankruptcy court to launch a preliminary marketing campaign designed to get the Glen Arm community on firm financial footing and bring it to full occupancy.
Before it could assume complete control of the 4-year-old community and begin admitting new residents, Presbyterian Senior Services needed additional approvals from the Office on Aging and the bankruptcy court, based on progress it made during a three-month marketing period that ended Nov. 30. During that period, 18 new residents were signed.
The plan of reorganization was confirmed by the U.S. bankruptcy court Nov. 27 and approved by the Office on Aging earlier this month.
Representatives of the Office on Aging say they plan to monitor the community's financial conditions and marketing progress closely.
"The residents at the facility have been a primary concern to our office," said Rosalie S. Abrams, director of the Office on Aging. "Now that the plan of reorganization has been approved, we are hopeful that past financial problems will be resolved."
Commercial Bank is the head of a consortium of 11 lenders that was the primary creditor of the original developers, Notchcliff Associates and Freestate Management Services.
EMA Management Inc. of Sykesville was appointed by the bankruptcy court to be the on-site manager for Glen Meadows and will remain in that role, Mr. Wasserman said.