Bent Philipson Seeks Bankruptcy Protection at Nursing Home

Bent and Avi Philipson added a twist to the saga unfolding at the 588-unit Cold Spring Hills Center for Nursing & Rehabilitation on Long Island.

On Thursday, ownership of the Woodbury facility filed for Chapter 11 bankruptcy protection, Newsday reported. Ownership filed for the petition at a federal bankruptcy court in White Plains.

The nursing home’s appointed chief restructuring officer said the bankruptcy would help ownership “obtain breathing room” as it evaluates next options. The petition pins the facility’s assets between $1 million and $10 million, while its liabilities are between $50 million and $100 million. The Philipsons have been struggling to meet a weekly payroll of $1.4 million.

Among the liabilities, the nursing home owes nearly $22 million to its landlord because it hasn’t paid “full rent” since 2016. The landlord? An entity owned by Bent Philipson.

The immediate concern is how the bankruptcy could impact the Philipsons’ “emergency evacuation” of the nursing home, which was initially scheduled to take place at the end of last year. More than 300 residents are at risk of being displaced and the entire staff of the nursing home could be laid off.

Last month, a state supreme court justice issued a temporary restraining order — requested by state Attorney General Letitia James — to stop the evacuation and keep the facility open. The bankruptcy petition could be a step towards ultimately resuming the evacuation process.

A hearing on the bankruptcy petition is scheduled for Friday afternoon.

Another shoe yet to drop in the story of the Cold Spring Hills Center is the potential arrival of nursing home magnate Eliezer Jay Zelman. The state is considering making Zelman the temporary receiver of the facility — the second-largest on Long Island — but the application for his appointment hasn’t progressed after the state said it needed more information.

Bent owns the facility, while his son Avi is the managing member. The state AG’s office sued the nursing home two years ago, claiming the facility neglected resident care and ran afoul of state laws to enrich ownership; the lawsuit was settled, including a $2 million penalty against the facility.

— Holden Walter-Warner