Freeborn Selected to Represent Unsecured Creditors in Bankruptcy Cases of Illinois Healthcare Facilities

On Oct. 30, 2017, nine long-term healthcare facilities filed bankruptcy petitions under Chapter 11 of the bankruptcy code in in the Bankruptcy Court for the Northern District of Illinois. The facilities include Community Care Center (Chicago), Bourbonnais Terrace Nursing Home (Bourbonnais), Crestwood Terrace Nursing Center (Crestwood), Frankfort Terrace Nursing Center (Frankfort), Joliet Terrace Nursing Center (Joliet), Kankakee Terrace Nursing Center (Bourbonnais), Southview Manor (Chicago), Terrace Nursing Home (Waukegan) and West Chicago Terrace Nursing Home (West Chicago). The lack of positive cash flow led to the bankruptcy filings by these facilities that provide nursing, healthcare, therapeutic and social services to the chronically ill with a diagnosis of mental illness. The facilities brought the lawsuit against the state of Illinois, which owes millions of dollars to these entities for old Medicaid receivables. The suit seeks Injunctive and Declaratory Relief against the director of the Illinois Department of Healthcare and Family Services in an attempt to obtain a more favorable Medicaid reimbursement rate from the state. Shelly A. DeRousse and Devon J. Eggert, co-chairs of Freeborn’s Bankruptcy and Financial Restructuring Practice Group, represent the Official Committee of Unsecured Creditors appointed by the United States Trustee in these jointly administered bankruptcy cases. Over the past three years, the team led by Ms. DeRousse and Mr. Eggert has been repeatedly selected to represent official committees of unsecured creditors in cases throughout the Midwest. In 2017, the Freeborn team has been retained by more creditors’ committees appointed in the Northern District of Illinois than any other law firm.