Operators Of State Veterans Home In Big Spring File For Voluntary Bankruptcy

Operators Of State Veterans Home In Big Spring File For Voluntary Bankruptcy

Anum Valliani

NewsWest 9

BIG SPRING - Issues with veterans care have been making headlines recently but this one is a little different. The operators for a State Veterans Home in Big Spring have filed for bankruptcy and they chose to do it.

The motion was filed earlier this week. Now, the Lamun-Lusk Sanchez State Veterans Home is among three that is seeking a Chapter 11 bankruptcy.

"It's a financial restructuring of the company, they're not liquidating their assets," Jim Suydam, who's the Press Secretary for the Veterans Land Board, said. The Board oversees the eight homes in the state.

Officials said it was a voluntary move to reorganize the company, one that will not impair the residents quality of care, nor impact workers pay.

"It's business as usual," Suydam said, adding that they filed for this bankruptcy in order to make sure operations weren't affected.

The Sears Methodist Retirement System made the request for the three homes it operates in Texas. The others grouped into the filing include the ones in El Paso and McAllen.

NewsWest 9 had initially received reports that the home is being investigated for misuse of government funds and representatives want to make it clear that to their knowledge, it is not true.

"That is a very concerning allegation. If anyone has such information, I would encourage them, I would strongly encourage them, to make a report with the Veterans Land Board or with us or with both of us to make certain that information comes forward," Melody Chatelle, Spokesperson for the System, said.

Officials said specifics to the process are hard to determine because its still early on. The process could take months to resolve but officials are hoping that no veterans will be affected.  

"We plan to emerge an even stronger organization on the other side of this. In the meantime, we will continue to operate and serve our veterans and provide the outstanding care that we do," Chatelle said.

The system had their first hearing Thursday where the court has instructed for them to continue paying vendors as planned. It's unknown whether they will need some help with funding from the state.

"We're in good standing with the state and with the community and look forward to continuing business as usual. We will always, always be working on making sure we have the right people on our campuses that deliver the care that the veterans deserve," Chatelle said.