Did you purchase Erickson Retirement Community STAMPS?
Soreide Law Group, PLLC, has been investigating Erickson Retirement Community STAMPS (Subordinated Tax Advantaged Mezzanine Put Securities) sold by B.C. Ziegler and Company in particular or other brokers.
Erickson Retirement Communities develops and manages retirement communities for middle-income people in the United States. Erickson Retirement Communities, LLC was formerly known as Senior Campus Living, LLC. Erickson has retirement communities in Pennsylvania, Texas, Virginia, Massachusetts, Maryland, Michigan, New Jersey, Kansas and Illinois, according to its web site.
The Erickson Retirement Community STAMPS are believed to be subordinated unsecured debt issued for the general corporate purposes of Erickson Retirement Community, including investments in its projects. The Erickson Retirement Community STAMPS are believed to have carried an initial interest rate of 11% and a ten-year term.
On April 18, 2010, the attorneys for Erickson Retirement Communities LLC and its affiliated debtors emerged from bankruptcy after the US Bankruptcy Court for the Northern District of Texas confirmed the debtors’ plan of reorganization and sale to Redwood Capital Investments LLC. The exit from Chapter 11 culminated with Redwood Capital agreeing to purchase all of Erickson’s assets for $365 million after Erickson spent just over six months in the bankruptcy process. The conditions of Redwood Capital’s successful bid required that a consensual plan of reorganization be agreed to by Erickson’s numerous creditors holding in excess of $2 billion of debt no later than April 30, 2010. Erickson’s organization included 20 continuing-care retirement communities that serve more than 23,000 residents throughout 11 states.
“We pursued an aggressive time schedule designed to capitalize on Erickson’s inherent value in the senior living sector and to avoid a deterioration of Erickson’s business. The expedited auction and reorganization allowed the company to preserve value for all stakeholders and protect the residents interest in their living communities,” said John Cusack, Vice-chair of DLA Piper’s Finance practice and Chair of its Real Estate Capital Markets Group. “With financing for the purchase and development of new senior living facilities still generally unavailable to its competitors, Erickson under Redwood Capital’s ownership will find itself in a unique position to grow based on several existing sites that are ready for development and expansion.”
Jim Davis of Redwood Capital, acknowledged to the Baltimore Sun, that the company must reverse negative perceptions stemming from the financial collapse, especially among seniors who pay $400,000 or more to live in the retirement campuses. He must also continue to contend with an economy and real estate market that haven’t fully recovered.
If you or a family member have suffered losses through Erickson Retirement Community STAMPS sold by B.C. Ziegler and Company, or other broker-dealers, call Lars Soreide, a Securities Arbitration Lawyer, for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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