Howard Ehrenberg and Mark Horoupian Successfully Conclude Multiple Matters Involving Bankrupt Assisted Living Facilities

Members Howard Ehrenberg and Mark Horoupian successfully concluded several matters involving the bankruptcies of nursing home facilities, which involved a variety of challenges. In one matter, a 99-bed skilled nursing facility in Pasadena, CA was faced with numerous employees quitting, leaving insufficient staff to handle crises that included a patient dying and another patient having to be transported to the hospital. Mr. Ehrenberg was the appointed trustee, and, with Mr. Horoupian as his counsel, resolved the problem by quickly vetting and selecting a potential buyer to have the opportunity to be the stalking horse bidder, on the condition that they brought in an emergency team to staff the facility. In less than two days, the court approved the sale and the facility was stabilized.

Another 99-bed facility in Ridgecrest, CA was substantially out of compliance with staffing regulations, as the facility was in a remote location and had difficulty attracting enough skilled employees to run the facility. The facility had also lost its lease. Mr. Ehrenberg obtained an offer from an adjacent hospital to acquire the facility and add to the facility’s staff, enabling the facility to become compliant with staffing regulations. The facility was successfully sold to the hospital.

Finally, Mr. Ehrenberg was appointed trustee for the owner of property which housed three adult living facilities in Pasadena, CA. The facilities were being improperly operated, and had numerous violations for infestations and unsanitary conditions. In addition, many mentally and physically disabled residents were not receiving sufficient supervision. With the assistance of Mr. Horoupian and the cooperation of the operating trustee, a contingency plan for transferring the patients out of the facilities was created, and a common buyer to acquire the land and facilities was selected. The sale was approved and is awaiting closure.


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