A management company of the for-profit owner of two senior communities on the Monterey Peninsula, Pacifica Senior Living Management, filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court for the Southern District of California last month with a long list of creditors waiting to be paid, including at least one local family and a Monterey contractor.
What will happen to the two communities – The Park Lane in Monterey and Pacific Grove Senior Living in P.G., and the hundreds of senior citizens living there – should the bankruptcy go through is unknown. Pacifica Senior Living Management has been the subject of numerous complaints at both facilities, as well as facilities it owns across California. It owns over 80 facilities nationally and is listed as the 12th largest operator in the U.S. by industry group Argentum.
Pacifica filed for Chapter 7 bankruptcy on March 24, listing 70 creditors in multiple states with estimated liabilities of between $10 million and $50 million. In Chapter 7, a judge may appoint a bankruptcy trustee to gather and sell assets to pay off debts. The person or entity filing the bankruptcy case could ask the court to exempt some assets from being sold.
Some of what Pacifica owes stems from court judgments worth millions of dollars, including cases where the company was found negligent for residents’ care. At the top of the creditor list is a family that recently won a $23 million judgement in the wrongful death of an 81-year-old resident at a Bakersfield facility. (Pacifica is currently being sued for damages in the alleged wrongful death of a Park Lane resident after a fall on the property in 2023.)
Also on the creditor list is California Premier Restoration, located in Monterey. The company sued Pacifica last year for $3,600 in small claims court, stating Pacifica refused to pay them for mold remediation work.
A meeting of creditors is scheduled to take place in U.S. Bankruptcy Court on Tuesday, April 29.
(1) comment
If the Chapter 7 filing is approved, and no one purchases the assets to run the senior centers, they'll be evicted. I suspect there will be serious opposition, with a more likely opposition being the Trustee suggesting to the court that a new Board be organized, and that it be converted to a Chapter 11 reorganization filing, allowing the new Board several years to put its house in order, while staving off its past creditors.
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.