Peterson Bankruptcy

One of the nation’s largest nursing home operators has filed for bankruptcy protection after defaulting on government-backed loans.  Peterson Healthcare operates 90 facilities in Missouri, Iowa and Illinois but filed for Chapter 11 protection in a Delaware bankruptcy court because of fiscal mismanagement.

Reuters reported Peterson claims $295,000,000 in debt, including $45M owed under special low-interest loans insured by HUD, the U.S. Department of Housing and Urban Development. Where did all the money go?

The company will continue its “normal” operations as it restructures while in bankruptcy.