Long List of Creditors Forces Chapter 11
With over 25 different entities to which it owes money, Archer City Nursing Center filed Chapter 11 bankruptcy on Dec. 9, 2014. The bankruptcy was filed in the Texas Northern Bankruptcy Court in front of Judge Harlin DeWayne Hale.
Archer City’s Community Nursing Facility
Archer City Nursing Center is officially operated under the name Archer Healthcare Providers which is based out of Archer City, Texas. This small town of about 2,000 residents is located approximately 140 miles northwest of Dallas.
The Nursing Center is the local nursing center for the community, and offers all types of nursing care, including long term care and short stays for recovery.
The Nursing Center rents part of a large building from Wood Family Enterprises which is owned by Covenant Care Providers LLC. Covenant Care is also the group which provides mangement of the Nursing Center.
Tax Problems Played a Big Role
“The reason for the bankruptcy filing, it was disclosed, was a result of a claim exerted by the IRS for $627,578.14 as shown in the List of Creditors,” said Richard L. Sanborn, President of Wood Family Enterprises, and managing member of Covenant Care Providers, “The claim was styled as payroll taxes incurred by third party.”
The above statements were given by Sanborn at a bankruptcy meeting with several of the creditors present. Sanborn was under oath when speaking,
The claim has been disputed by Sanborn, as well as the lawyer representing Archer Healthcare, Weldon L. Moore III.
Additional causes of financial problems were due to the fact that another medical facility, Vernon Healthcare Providers LLC also rents a different part of the building. Vernon Healthcare, together with a third facility one block away from Archer Healthcare, have apparently taken a significant amount of revenue away from Archer City Nursing Center.