Judge sets evidentiary hearing in North Shore Manor bankruptcy case

LOVELAND — Attorneys for North Shore Manor Inc., the nursing home at 1365 W. 29th St. in Loveland, are working through objections to their Chapter 11 bankruptcy reorganization plan and were directed by bankruptcy Judge Joseph Rosania to file an amended plan by Nov. 3.

The contentious case pits owners of North Shore Manor nursing home and North Shore Associates — the real estate company — against Columbine Health Systems Inc. and its owner, Robert Wilson, who had been managing the facility for several years prior to being removed by the majority shareholders. North Shore shareholders have alleged that mismanagement by Columbine and a cadre of related companies resulted in the financial woes. Columbine alleges that financial issues resulted from failure of shareholders to invest additional sums into the operation to shore up shortfalls.

A pair of bankruptcy cases were filed in March, one by the nursing home and one by the real estate company on which the nursing home sits.

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In a status hearing Wednesday, debtor attorney Aaron Garber with the firm Wadsworth Garber Warner Conrardy PC, told the judge that objections raised by the U.S. Department of Health and Human Services have been largely resolved and he expects to reach a resolution with the U.S. Trustee assigned to the case.

“Those issues will resolve a piece of the Wilson entities’ objections to the plan. I’d like to think optimistically (about reaching a consensual plan) that there’s a way to come to a resolution. … I haven’t lost all hope.”

Garber asked for 45 days to file an amended reorganization plan, and the judge gave him 44. The plan will be due Nov. 3, with objections due by Nov. 24. Rosario set an evidentiary hearing, in person at the U.S. Bankruptcy Court in Denver, for 9:30 a.m., Dec. 12.

In concluding the status hearing, Rosania appealed for mutual resolution of the dispute.

“The only other comment I’d have is that this case is crying out for mediation. … Instead of spending hundreds of thousands in fees by all the parties in the case, maybe a neutral mediator with experience in bankruptcy might limit the issues or narrow the issues. In the last six months to a year, I’ve had a couple of mediators who do this work with great success in bringing people to the table. I know the differences are deep seeded. I’m just going to throw that out there …,” he said.

The actions filed in Federal Bankruptcy Court in Denver are North Shore Manor Inc., case number 23-10809, and North Shore Associates LLC, case number 23-10808.