Glen Hope Harbor, Inc. (“Glen Hope”) was a Texas nonprofit corporation that oversaw the operation of multiple assisted living/memory care facilities primarily in greater Houston and San Antonio under the name The Autumn Grove Cottages (“The Cottages”).
Since 2019, Glen Hope had sustained operating losses that made it insolvent, and revenue and census numbers were severely impacted by the Covid-19 pandemic. As a result, the bondholders’ indenture trustee decided to relocate the residents, close the assisted living/memory care operations, and sell The Cottages in a chapter 7 bankruptcy proceeding in the United States Bankruptcy Court for the Western District of Texas, Austin Division.
SC&H Capital’s Special Situations team was retained by the chapter 7 bankruptcy trustee as the exclusive court-approved investment banker to conduct the sale process. SC&H’s exhaustive marketing effort not only identified significant strategic interest from existing assisted living/memory care operators, but also attracted bidders interested in alternative uses including displaced children’s housing, behavioral health operations, drug rehab centers, and medical and law offices.
SC&H conducted two separate auctions which included a diverse mix of bidder participation. SC&H’s special situation advisory expertise and proven ability to create competitive auctions allowed us to nearly double the initial stalking horse bid and maximize recovery for the bankruptcy estate.