Roy M. Terry, Jr., VSB No. 17764

William A. Gray, VSB No. 46911

John C. Smith, VSB No. 44556

SANDS ANDERSON PC

P.O. Box 1998

Richmond, Virginia 23218-1998

Telephone: 804.648.1636

Proposed Counsel for the Debtors

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Alexandria Division

In Re:

TCR III, INC. (f/k/a America House One, Inc.), Case No. 15-14162-BFK

EIN: 54-1910021

TCR IV, INC. (f/k/a America House Two, Inc.), Case No. 15-14163-BFK

EIN: 54-1892641

TCR V, INC. (f/k/a America House Three, Inc.), Case No. 15-14165-BFK

EIN: 54-1914323

TCR VI, INC., and Case No. 15-14168-BFK

EIN: 76-0801398

AMERICA HOUSE ASSISTED LIVING OF Case No. 15-14169-BFK

FRONT ROYAL, L.L.C.,

EIN: 54-2023050

Debtors. Chapter 11

DEBTOR'S MOTION FOR DETERMINATIONS

UNDER BAPCPA’S HEALTH CARE PROVISIONS

COME NOW TCR III, Inc. (f/k/a America House One, Inc.); TCR IV, Inc. (f/k/a America

House Two, Inc.); TCR V, Inc. (f/k/a America House Three, Inc.); TCR VI, Inc.; and America

House Assisted Living of Front Royal, L.L.C. (collectively the "Debtors"), by counsel, and file

this motion pursuant to Bankruptcy Code §§ 105(a), 333, 351, and 1107(a) for entry of an order

pertaining to provisions under the Bankruptcy Abuse Prevention and Consumer Protection Act

("BAPCPA") determining the necessity of an appointment of a patient care ombudsman, and

applicability of the patient record disposal provision, and in support thereof state as follows:

Jurisdiction

1. On November 24, 2015 (the "Petition Date"), the Debtors filed voluntary

petitions seeking relief pursuant to Chapter 11 of the United States Bankruptcy Code. The

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Debtors continue to manage and operate their respective business as a debtor-in-possession in

accordance with 11 U.S.C. §§ 1107 and 1108. No creditor’s committee, trustee, or examiner has

been appointed herein.

2. The Court has jurisdiction over this motion pursuant to 28 U.S.C. § 157(b)(2).

3. Venue in this District is proper pursuant to 28 U.S.C. §§ 1408 and 1409.

Summary

4. Debtor TCR III, Inc. ("TCR III"), is a Virginia corporation licensed by the

Virginia Department of Social Services to operate an assisted living facility for up to 27 residents

at 10140 Hastings Drive, Manassas, Virginia 20110 (the "Manassas Facility"). TCR III owns

the Manassas Facility.

5. Debtor TCR IV, Inc. ("TCR IV") is a Virginia corporation licensed by the

Virginia Department of Social Services to operate an assisted living facility for up to 31 residents

at 680 University Lane, Orange, Virginia 22960 (the "Orange Facility"). TCR IV owns the

Orange Facility.

6. Debtor TCR V, Inc. ("TCR V") is a Virginia corporation licensed by the Virginia

Department of Social Services to operate an assisted living facility for up to 46 residents at 110

Spanish Oak Road, Stephens City, Virginia 22665 (the "Stephens City Facility"). TCR V owns

the Stephens Facility.

7. Debtor American House Assisted Living of Front Royal, L.L.C. ("America

House Front Royal") is a Virginia limited liability company licensed by the Virginia

Department of Social Services to operate an assisted living facility for up to 27 residents at 106

Westminster Drive, Front Royal, Virginia 22630 (the "Front Royal Facility") (together with the

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Manassas Facility, the Orange Facility and the Stephens City Facility, the "Facilities"). America

House Front Royal owns the Front Royal Facility.

8. Debtor TCR VI, Inc. ("TCR VI") is a Virginia corporation with a mailing address

of 400A Kendrick Lane, Front Royal, Virginia 22630. TCR VI is wholly owned by TCR III.

TCR VI was formed to manage one or more Facilities, but has not taken over management of

any of the Facilities.

9. For each of the Debtors except TCR VI, the residents in the Facilities are elderly

people who rely on the Debtor for their every need.

10. Debtors believe that TCR III, TCR IV, TCR V, TCR VI, and America House Front

Royal are a "health care business" as that term is defined in the Bankruptcy Code. See 11 U.S.C.

§ 101(27A) ("The term ‘health care business’ . . . (B) includes . . . (ii) any long-term care facility,

including any . . . (III) assisted living facility; (IV) home for the aged; . . . .").

I. APPOINTMENT OF PATIENT CARE OMBUDSMAN

11. The Bankruptcy Code provides in the relevant part:

§ 333. Appointment of patient care ombudsman

(a)(1) If the debtor in a case under chapter 7, 9, or 11 is a

health care business, the court shall order, not later than 30 days

after the commencement of the case, the appointment of an

ombudsman to monitor the quality of patient care and to represent

the interests of the patients of the health care business unless the

court finds that the appointment of such ombudsman is not

necessary for the protection of patients under the specific facts of

the case.

(2)(A) If the court orders the appointment of an

ombudsman under paragraph (1), the United States trustee shall

appoint 1 disinterested person (other than the United States trustee)

to serve as such ombudsman.

(B) If the debtor is a health care business that

provides long-term care, then the United States trustee may appoint

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the State Long-Term Care Ombudsman appointed under the Older

Americans Act of 1965 for the State in which the case is pending

to serve as the ombudsman required under paragraph (1).

(C) If the United States trustee does not appoint a

State Long-Term Care Ombudsman under subparagraph (B), the

court shall notify the State Long-Term Care Ombudsman

appointed under the older Americans Act of 1965 for the State in

which the case is pending, of the name and address of the person

who is appointed under subparagraph (A).

11 U.S.C. § 333(a).

12. The applicable Debtor’s primary concern is the health, safety and welfare of the

elderly residents residing at the facility.

13. Under the specific facts of the case, Debtor does not believe that the appointment

of such ombudsman is necessary for the protection of the patients and would rather spend funds

on care of the patients than an ombudsman.1 Notwithstanding, Debtor understands the Court, in

an abundance of caution, may wish to appoint such person.

WHEREFORE, the applicable Debtor requests that the Court enter an order determining

whether the appointment of such ombudsman is necessary for the protection of patients under the

specific facts of the case, and for such other and further relief as is just and proper.

II. DISPOSAL OF PATIENT RECORDS

14. The Bankruptcy Code also provides:

§ 351. Disposal of patient records.

If a health care business commences a case under chapter 7,

9, or 11, and the trustee does not have a sufficient amount of funds

to pay for the storage of patient records in the manner required

1

If the case is converted to liquidation under Chapter 11 or 7, or BB&T moves for relief from the automatic stay to

foreclose on the facility, Debtor believes Court should protect the health, safety and welfare of the residents during

an orderly liquidation by surcharging BB&T’s collateral to the extent necessary under 11 U.S.C. § 503.

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under applicable Federal or State law, the following requirements

shall apply: . . . .

11 U.S.C. § 351. The section then provides for notification requirements prior to the destruction

of patient records.

15. Debtors believe this section is not applicable because each has no intention of

destroying patient records. Rather, each Debtor intends to continue operations and care for

residents at the facility without interruption while it reorganizes its finances, and has a sufficient

amount of funds to pay for the storage of patient records in the manner required under applicable

Federal or State law. Notwithstanding, because this is a significant provision added by

BAPCPA, in an abundance of caution, Debtors wished to bring this provision to the Court’s

attention.

WHEREFORE, the applicable Debtor requests that the Court enter an order finding,

subject to further orders of the Court, that the provisions for disposal of patient records is not

applicable at this time, and for such other and further relief as is just and proper.

Date: December 29, 2015 TCR III, INC., TCR IV, INC.,

TCR V, INC., TCR VI, INC., and

AMERICA HOUSE ASSISTED LIVING OF

FRONT ROYAL, L.L.C.,

by Proposed Counsel

/s/ Roy M. Terry, Jr.

Roy M. Terry, Jr., VSB No. 17764

William A. Gray, VSB No. 46911

John C. Smith, VSB No. 44556

SANDS ANDERSON PC

P.O. Box 1998

Richmond, VA 23218-1998

Telephone: 804.648.1636

Proposed Counsel for the Debtors

W3215677

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Proposed Order

Roy M. Terry, Jr., VSB No. 17764

William A. Gray, VSB No. 46911

John C. Smith, VSB No. 44556

SANDS ANDERSON PC

P.O. Box 1998

Richmond, VA 23218-1998

Telephone: 804.648.1636

Proposed Counsel for the Debtors

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Alexandria Division

In Re:

TCR III, INC. (f/k/a America House One, Inc.), Case No. 15-14162-BFK

EIN: 54-1910021

TCR IV, INC. (f/k/a America House Two, Inc.), Case No. 15-14163-BFK

EIN: 54-1892641

TCR V, INC. (f/k/a America House Three, Inc.), Case No. 15-14165-BFK

EIN: 54-1914323

TCR VI, INC., and Case No. 15-14168-BFK

EIN: 76-0801398

AMERICA HOUSE ASSISTED LIVING OF Case No. 15-14169-BFK

FRONT ROYAL, L.L.C.,

EIN: 54-2023050

Debtors. Chapter 11

ORDER DETERMINING

BAPCPA’S HEALTH CARE PROVISIONS

This matter comes before the Court upon the applicable Debtor's motion for certain

determinations under the health care provisions of the Bankruptcy Abuse Prevention and

Consumer Protection Act ("BAPCPA"), and due notice having been provided under the

circumstances, and sufficient cause appearing therefore,

IT IS ORDERED that Debtor’s Motion for Determination under BAPCPA’s Healthcare

Provisions is GRANTED;

IT IS ORDERED that under the specific facts of the case, the appointment under

11 U.S.C. § 333 of an ombudsman to monitor the quality of patient care is not necessary; and

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THE COURT FINDS that in light of Debtor’s representations that it has no intention of

disposing of patient records, the provision under 11 U.S.C. § 351 for disposal of patient records

is not applicable at this time.

DATE:

UNITED STATES BANKRUPTCY JUDGE

ENTERED ON DOCKET:

I ask for this:

/s/ Roy M. Terry, Jr.

Roy M. Terry, Jr., VSB No. 17764

William A. Gray, VSB No. 46911

John C. Smith, VSB No. 44556

SANDS ANDERSON PC

P.O. Box 1998

Richmond, VA 23218-1998

Telephone: 804.648.1636

Proposed Counsel for the Debtors

LOCAL RULE 9022-1(C) CERTIFICATION

I hereby certify that the foregoing proposed order has been endorsed by all necessary

parties.

/s/ Roy M. Terry, Jr.

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Copies to:

Charles V. Rice

400A Kendrick Lane

Front Royal, VA 22630

Proposed Debtor Designee

Roy M. Terry, Jr., Esquire

SANDS ANDERSON PC

P.O. Box 1998

Richmond, VA 23218-1998

Proposed Counsel for the Debtors

TC 10 Grantor Trust

TS Cambridge Grantor Trust

c/o Valstone Asset Management

260 E. Brown Street, # 250

Birmingham, MI 48009

Secured Parties

Bruce M. Blanchard, Esquire

Donald King, Esquire

Alexander M. Laughlin, Esquire

Odin, Feldman & Pittleman, P.C.

1775 Wiehle Avenue, Suite 400

Reston, VA 20190

Counsel for Secured Parties

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