In re: TriNat Health Care, Inc.
United States Bankruptcy Court for the Southern
District of Indiana, Indianapolis Division
Case No. 02-06360-JKC-11
TriNat Health Care, Inc. filed a voluntary chapter 11 petition for relief.
TriNat leases and operated nine (9) long term care
facilities located in
Indiana.
Tutera took over the management of the TriNat facilities immediately
prior to the filing of the chapter 11 proceeding and, in conjunction
therewith, offered to make a debtor in possession loan in the amount
of $500,000 available to TriNat. However, shortly following the filing
of the proceeding, the State of Indiana implemented a drastic Medicaid
rate decrease that reduced the overall annual revenue for these nine
(9) homes by approximately $2,800,000. Tutera determined that
TriNat would be unable to reorganize its affairs, primarily since TriNat
leased its facilities and the landlord was unwilling to make the concessions
necessary to allow the facilities to operate profitably. Therefore, upon the
advice of Tutera, the Court rejected the leases for the nine (9) facilities,
thereby preserving the ability of TriNat to maximize its distributions to creditors.