Sunday, September 25, 2016

Two Years After Taking Title To Foreclosed Nursing Home, Bank Announces Closure Of Facility, Causing Displacement Of Two Dozen Residents

In Johnson City, Tennessee, WCYB-TV Channel 5 reports:
  • The bank that has held the title on a Johnson City nursing home has announced it's closing the facility.

    Employees and families of patients at Lexington at Johnson City were recently informed of the move during a meeting held on last week.

    TruPoint Bank has kept the nursing home operational after the previous owners defaulted on a loan.

    The decision will cause 24 residents to be relocated.

    “After learning of the owners plans to shut the doors immediately in the spring of 2014, TruPoint Bank began working diligently behind the scenes, trying to avoid an abrupt closure of the Lexington,” explains Barry Elswick, president & CEO of TruPoint Bank.

    “For two years, the bank’s strategy has been twofold: we’ve sought to market the facility to grow the resident population while simultaneously seeking new ownership.”

    Since May 2014, TruPoint Bank has funded, to the extent that resident rent payments were insufficient, full operations at the facility, including costs directly related to monthly operations, major capital repairs to its elevators and boilers, demolishing a gutted building and providing new and ample parking.

    “Unfortunately, new ownership has not been secured and we are faced with this very difficult decision,” says Elswick. “We had worked toward and hoped for a very different outcome.”

    The last day of operation is October 31.
Source: Lexington at Johnson City nursing home to close doors Oct. 31 (Bank had kept facility open for two years).

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