Capitol Lakes Inc. files for Chapter 11 bankruptcy
Citing a breakdown in efforts to negotiate a more sustainable loan agreement with two foreign banks, Capitol Lakes Inc., a continuing care retirement community in Madison, has voluntarily filed for protection and reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Day-to-day operations — including dining and transportation services, care and support activities, and nursing and wellness programs — are planned to continue as usual during the reorganization process.
Capitol Lakes had been prepared to move forward with a refinancing proposal until mid-December, when its lenders imposed additional conditions it found unfeasible and unacceptable. The decision to seek financial reorganization quickly followed.
Serving seniors since 1975, Capitol Lakes serves more than 300 residents through its 285 independent living, assisted living, memory care, and skilled nursing/rehabilitation units on a four-building campus in downtown Madison.