Petersen Health Care plans to remain in business despite allegedly owing more than $55 million to two lenders now seeking to make good on that debt in federal court.
That's according to a report in McKnight's Long-Term Care News. A company representative told McKnight's that the Peoria-based long-term care facility operator will restructure, but isn't shutting down. Nineteen of its facilities are currently operating under a court-appointed receiver.
A recent Bloomberg report cited multiple anonymous sources who claimed the company will soon file for Chapter 11 bankruptcy. Such a bankruptcy filing would allow Petersen Health Care to remain in control of its businesses while restructuring its debt.
One of Petersen Health Care's creditors claims in court filings that the company is seeking to file for bankruptcy, but is unable to do so until it can secure new insurance coverage.
A Petersen representative declined to comment to WCBU on whether the company will file for bankruptcy, and instead directed a reporter to the McKnight's story.
Mark Petersen is the sole owner of the company. He also operates an unrelated hotel business, and owns Peoria's Louisville Slugger Sports Complex.
Petersen Health Care currently operates around 100 long-term care facilities in Illinois, Iowa, and Missouri.
