Newspaper article The Florida Times Union

NBA Clashing with Creditors over $216 Million Debt; Parent Company of Cypress Village Says It Will Continue with Services during Talks

Newspaper article The Florida Times Union

NBA Clashing with Creditors over $216 Million Debt; Parent Company of Cypress Village Says It Will Continue with Services during Talks

Article excerpt

Byline: SARAH SKIDMORE, The Times-Union

National Benevolent Association, the financially troubled parent company of five local housing centers, said Thursday it is still at odds with creditors but will continue providing service to residents.

NBA, a St. Louis-based company, has approximately $216 million in debt and has been talking with creditors since September to find a remedy. Both sides will continue with negotiations. According to NBA, there are substantial differences between the two sides -- creditors are urging operational changes, and the company wants to restructure its debt.

NBA, now free of a confidentiality agreement, announced Thursday that it does not agree with creditors' recommendations and will not follow their request.

NBA officials said although the future remains unclear, business at NBA's local housing centers, such as upscale retirement community Cypress Village, will continue during negotiations.

"We plan on continuing our 117 years of service," NBA spokesman Bob McCarty said. "Should residents worry? No, I don't think so."

Frank Bramwell, Corporate Trust senior vice president for UMB Bank, trustee for NBA, declined to comment on the situation because of pending litigation against NBA. He declined to discuss the lawsuit. Creditors could not be reached.

According to the information provided by the company, creditors requested that NBA increase its revenue and cash flow by increasing fees at senior living facilities and reducing corporate expenses. NBA primarily operates federal housing communities but also has 11 upscale retirement communities nationwide, including Jacksonville's Cypress Village.

Additionally, the creditors demanded that NBA get a third-party manager for nearly all of its facilities.

NBA said it considered the creditor's proposal and decided not to proceed because it would cost an additional $5 million annually, add unnecessary management and duplicate another information technology contract. …

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