Bankruptcy court lifts temporary injunction, restraining order in North Shore case
LOVELAND — A court hearing today to review evidence to support or deny a continued injunction and restraining order in the North Shore Manor reorganization was canceled. The injunction and restraining orders were lifted.
North Shore Manor Inc., the operator of the Loveland nursing home and rehabilitation facility with the same name, reported to the court that alternative vendors for medical supplies and services had been identified, thus eliminating the need for continued use of similar services from companies affiliated with the nursing home’s former manager, Columbine Management Services.
The North Shore filing with the court on April 13 followed a proposed motion for dismissal from Columbine filed the day prior. In that, attorney John O’Brien of the law firm Spencer Fane LLP argued, as he has previously, that North Shore’s financial issues resulted from failure of the stockholders to recapitalize the facility when COVID relief dollars were no longer available. In a lengthy recital of background from the Columbine perspective, O’Brien wrote that the majority shareholder of the facility “developed a scheme to stiff Mr. (J. Robert) Wilson and other creditors.” The stockholders filed bankruptcy in order “to use money available for pre-petition creditors to fund post-petition working capital needs.”
North Shore stockholders have contended in court filings that Columbine’s network of vendors funneled expense payments to Wilson’s companies at above-market prices.
Meanwhile, patients and family members have expressed angst at the proceedings and wondered whether the parties to the dispute have concern for the health and safety of the 103 patients, as of the bankruptcy filing date, at the facility.
Judge Joseph Rosania Jr. has noted on multiple occasions that the proceedings are of concern to him because of the potential for patient harm. He authorized the appointment on March 22 of Leah McMahon of Denver to act as court-appointed ombudsman to look after patient interests.
John Matis, the husband of a long-term patient at the facility, told BizWest this week that there’s “an enormous amount of panic” among those directly affected by the outcome of the bankruptcy.
He said it has been his experience that North Shore is the only option in the region for many, including his wife. He rated North Shore as “a solid seven or eight out of 10” in terms of quality, with the facility’s age as the only reason to discount the rating.
He said he has noticed no change in the level of care offered to his wife during the proceedings. “People have been very dedicated,” he said, noting that the front-line staff has remained the same and the dining and dietary care have remained stable.
“The cleanliness is amazing,” he said.
He also said his contacts with Colorado regulatory authorities have left him confident that the facility will continue to operate. “The state is saying it is staying open. These places are too essential to fail,” he said.
Source: BizWest
