Special Announcement
November 30, 2011
Today, The Village at Penn State Retirement Community (VPS) announced that it signed an Asset Purchase Agreement with Liberty Lutheran Housing Development Corporation (LLHD), headquartered in Ambler, PA, just outside of Philadelphia and part of the Liberty Lutheran Services organization. Under the terms of this agreement, Liberty Lutheran Services would become the new owner of VPS.
Our priority has always been to preserve the high quality of care and services our residents enjoy. To that end, The Board sought a partner that would bring those same values to our community. Liberty Lutheran is a fiscally strong organization with a long-held commitment to excellence in senior care. They have distinguished themselves in their region as an employer of choice and as a leading provider of rehabilitation, skilled nursing and personal care services. In addition, they - like VPS - have achieved the rare Five-Star Quality Rating from the Centers for Medicare & Medicaid Services.
An Asset Purchase Agreement in this situation is often referred to as a “stalking horse” agreement, and the process to consummate it has the support of our senior bondholders and other key constituents. The Village will need to go through a court proceeding in order to effectuate the sale. Therefore, on November 30, The Village filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code, and will ask the court to approve the transaction as well as procedures designed to implement a fair and open process to allow other responsible operators to try and outbid Liberty Lutheran to acquire VPS.
It is important to know that our agreement with Liberty Lutheran and the requisite Chapter 11 filing is the result of a process that VPS began well over two years ago when the challenges in the economy and real estate markets put added pressure on the waning finances of the existing community.
We are gratified by the attention we have received in the marketplace. Those suitors with the most interest have been attracted by VPS’ strong operations, the commitment and longevity of our staff, and the high level of satisfaction our residents enjoy. As an early leader in the development of University Based Retirement Communities, The Village is regularly sought out by other universities looking to develop their own retirement communities.
We are also pleased that LLHD will continue the strong affiliation with Penn State University. The facility’s name will remain ‘The Village at Penn State’ and residents will continue to enjoy the growth and development of intergenerational programming as well as all the amenities that Penn State offers.
While we expect to conclude the transaction soon with LLHD, we are confident in the process as a whole. In particular, we are confident that the passion our residents and staff have toward the community and the services it provides will remain strong throughout this period.
Marianne Hogg, Executive Director