DALEVILLE, Va.—A federal bankruptcy court judge in Roanoke, Va., approved a reorganization plan July 12 that will allow one of Virginia Baptist Homes’ retirement communities to emerge from Chapter 11 bankruptcy.
The Glebe, located just outside Roanoke, filed for bankruptcy protection in 2010, a process that allows a business to continue to operate while negotiating a restructuring of its debts. The reorganization plan approved July 12 paves the way for the seven-year-old retirement center to conclude the Chapter 11 process.
“We’re exhilarated, and I think this is a good day for all the constituencies of The Glebe but especially the residents,” Randall Robinson, president and CEO of Virginia Baptist Homes, said in a press statement.
The dining room at The Glebe overlooks the Blue Ridge Mountains.
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The Glebe opened in 2005 on 65 acres in Botetourt County, the fourth retirement center to be operated by Virginia Baptist Homes. The others are in Richmond, Newport News and Culpeper, which also is the agency’s headquarters.
Almost immediately the community saw lower than expected occupancy rates, in part because of the recession and a weak housing market, which made it difficult for potential residents to sell their homes.
Complicating The Glebe’s prospects were a lawsuit filed by Botetourt County in 2006 challenging its exemption from local taxes—a status upheld by the Virginia Supreme Court in 2008—and an order from Virginia’s State Corporation Commission, in response to the agency’s uncertain financial situation, to cease collecting entrance fees.
But despite the hardships, new residents continued to move to apartments, cottages, assisted living and nursing care at the Glebe, said Robinson.
“This confidence in the organization comes from the extraordinary reputation of resident focused services and amenities and high quality of care,” Robinson said in the press release. “Since the bankruptcy was filed in 2010, the census has increased, and several moves are currently scheduled, as is typical each month. Our staffing level continues to remain steady, as it has during this period. We also continue to maintain good working relationships with long-time vendors.”
Currently, The Glebe has about 220 residents, according to the Roanoke Times.
Several of those residents were at the court hearing July 12 and praised Virginia Baptist Homes staff for its management during the Chapter 11 process. Joy McNabb said residents have experienced “virtually no impact from the bankruptcy.” Carol Edwards, who moved to the Glebe when it opened in 2005, said it was “the most phenomenal place I’ve ever lived.”
A key component of the reorganization plan is a $2 million short-term loan to The Glebe by the Virginia Baptist Homes Foundation, which the retirement community will repay with interest.
At least one additional step is necessary before The Glebe emerges from Chapter 11, the Roanoke Times reported. The State Corporation Commission must review the reorganization plan and consider lifting the ban on collecting entrance fees. If the SCC does not end the ban, The Glebe will challenge the prohibition in court.
Robinson expressed appreciation for “residents, employees, vendors, board of trustees, donors and other stakeholders of The Glebe who have continued to support the community during this time. From new residents moving to The Glebe to The Glebe’s annual charity golf tournaments for the benevolent ministry, support has been remarkable and appreciated.”
Robert Dilday ([email protected]) is managing editor of the Religious Herald.