New York State not-for-profit corporations ran a 163-bed skilled nursing facility and an 80-bed adult residential facility in Herkimer, New York.

Events Leading to Bankruptcy: Previous management committed fraud by using a purchasing entity to acquire basic supplies and then reselling them at a material markup to the two not-for-profits. Senior debt had ballooned to over $15.0 million (Northern District of New York (Case no. 17-60140 (DD)).

Built-in Herkimer in 1893, the former Folts Mansion served the Institute to the Woman's Foreign Missionary Society of the Methodist Episcopal Church as a training center until 1927. In 1987, the new construction behind the historic mansion built the 163-bed skilled nursing facility and an 80-bed adult residential facility.

The deeds and titles were a mess over many poorly documented real estate transactions.

Folts supplied critical care resources to senior citizens in that part of Central New York State.

Efficient Process: Manning advised the Debtor on an expedited §363 sale of assets, reaching out to over 80 strategic and financial bidders.

• Seven potential bidders showed up in Syracuse for a spirited auction. -Ran a $9.75 million stalking horse bid to a $16.6 million prevailing bid.

• Recovery was 100% for all creditors!