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Bank Forecloses On Assisted Living Chain

EUREKA, Calif. (CN) - Fortuna Assisted Living, Sunwest Management and affiliates owe creditors $1 billion and owe another $400 million to investors, The Royal Bank of Scotland says in calling in a $21.6 million loan. The bank says more than 80 Sunwest entities have defaulted on loans, at least 10 are in bankruptcy, and it is commingling funds from its chain of properties to try to stay afloat.

The bank sued in Humboldt County Court, citing four defendant-owned properties in California and Oregon. It also seeks foreclosure on properties in New York and New Mexico, used to secure the loan.

The bank is represented by Mitchell, Brisso & Delaney of Eureka and Sidley Austin in Los Angeles.

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