As one of the leading active retirement communities in the United States, The Village at Penn State has long offered bountiful amenities to its residents. Residents can take college courses, attend University activities, participate in sports and outdoor recreation and even receive personalized house care services. While The Village has maintained its upscale reputation, economic challenges have pushed the privately owned retirement community into financial trouble. Struggling to manage its debt load for the last two years, The Village at Penn State has decided to seek bankruptcy protection.
A press release from earlier this week stated that The Village will be aiming to reorganize its debts and has agreed to an asset purchase agreement with Liberty Lutheran Housing Development Corp. Liberty is said to become the new owner and operations manager of The Village, which also owns and operates several other retirement facilities around the Philadelphia area.
However, the sale isn’t final yet.The Village must first go through a Chapter 11 proceeding in U.S. Bankruptcy Court to effectuate the sale, but will also be open to other bidders while the case is being processed. It is hoped that the debts can be reorganized to provide a free and clear sale of the company by early February and have the sale finalized by the summer of 2012. The Village officials are reassuring residents that no changes will take place that could affect their lifestyle, amenities or programming.