Parent company of Victoria Nursing and Rehab files for bankruptcy
By BY JESSICA PRIEST - JPRIEST@VICAD.COM
Feb. 26, 2013 at 5:04 p.m.
Updated Feb. 26, 2013 at 8:27 p.m.
Little is expected to change for residents of the Victoria Nursing and Rehab Center after its parent company declared bankruptcy last week.
Advanced Living Technologies Inc., which listed between $10 million and $50 million in both assets and debts, filed for Chapter 11 bankruptcy Feb. 20 for the Victoria center and five other health care facilities in the state.
The Austin-based nonprofit said in court documents that it has anywhere from 200 to 999 creditors. It owes the top two - Colinas Healthcare Inc. and Healthcare Services - about $1.7 million and about $735,000, respectively.
Josh Walton, the business office manager at Victoria Nursing and Rehab Center, said its 80 residents shouldn't notice a difference in service.
"We're not turning anyone away. ... What they've told us is basically a new owner is going to take over," he said.
Walton did not know who that new owner may be.
Attorney Morris D. Weiss, of the Hohmann, Taube and Summers law firm, said Advanced Living Technologies Inc.'s facilities are scheduled to be sold together May 9.
"If anything, (the services) may improve because (the new owner) will have strong financials," Weiss said.
Weiss said Advanced Living Technologies Inc. filed for bankruptcy once before in 2008.
The company said in court documents that the 2008 economic downturn - coupled with the changes in Medicare and Medicaid reimbursements - were to blame.
Weiss said although Advanced Living Technologies Inc. does not have a schedule for repayment to its creditors, the court allowed it Monday to continue paying its employees and utilities as usual.
Victoria Rehab and Nursing Center, at 114 Medical Drive, first opened under different management May 7, 1986, Walton said.
It provides a way to help people transition from the hospital to home, offering activity programs, some involving music, social services and rehabilitation as well as skilled nursing care on a 24-hour basis, according to court documents.