Erickson Retirement Communities Files for Bankruptcy, Company to be Sold

Erickson Retirement Communities, the Catonsville, MD-based national manager and developer of continuing care retirement communities, has signed a definitive agreement to be acquired by Redwood Capital Investments LLC, an investment company controlled by Baltimore businessman Jim Davis. To complete the sale of the company to Redwood, Erickson filed a voluntary petition for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Dallas, TX on Monday.

According to company spokesman Mel Tansill, Erickson Retirement Communities has two core businesses: its management arm, which provides services, care and amenities for community residents, and continues to operate successfully; and its commercial real estate development arm, which acquires land for future campus growth, and has been significantly impacted by the recession.

Erickson expects the transaction with Redwood, which is subject to approval of the Court, to be approved and consummated in the first quarter of 2010. Erickson's Communities are in the states of Colorado, Illinois, Kansas, Maryland, Massachusetts, Michigan, New Jersey/New York, Texas and Virginia.