Inspired Healthcare Capital Holdings: Senior Living Platform Seeks Sale

Inspired Healthcare Capital Holdings, LLC and affiliates filed for chapter 11 protection on February 2, 2026, in the U.S. Bankruptcy Court for the Northern District of Texas. In the filing announcement, the company said it operates 35 senior living communities in 14 states serving about 2,620 residents, with services spanning independent living, assisted living, and memory care.

The First Day Declaration describes a complex capital structure funded through private-placement investment funds and Delaware Statutory Trust (DST) offerings, alongside third-party secured debt at the property and master-tenant level. The debtors say operational underperformance, a formal SEC investigation that halted investor distributions, and an effort to stabilize liquidity through a proposed $35 million DIP facility drove the decision to pursue chapter 11.

DIP-Led Stabilization and a Portfolio-Wide Restructuring

Entity structure and debtor roster. The debtor group spans a sponsor/holdco platform, investment funds, DST property owners, master tenants, and a set of operating-service affiliates that provide management, marketing, and architectural services. The Joint Administration Motion lists a large roster of debtor entities, many of which are DSTs and master-tenant entities organized on a property-by-property basis.

Capital structure and investor model. The First Day Declaration describes a capital stack anchored by private-placement fund investments and DST equity, supplemented by third-party secured debt at certain properties. The company said it raised more than $390 million from approximately 3,300 fund investors, and more than $1.2 billion across DST offerings and development-related capital. As of November 30, 2025, unsecured liabilities totaled about $165.8 million, including roughly $148.1 million in investor promissory notes. The debtors also report approximately $59 million in accrued reallocation fees across DSTs.

Drivers of distress. The First Day Declaration attributes the filing to operational underperformance at certain communities, net operating income shortfalls against master lease obligations, and the liquidity impact of supporting master rent. The debtors said the sponsor contributed approximately $86 million to cover shortfalls for 23 master tenants. The company also disclosed a formal SEC investigation that began April 30, 2025, followed by the suspension of DST distributions in June 2025 and the suspension of debt service in October 2025. The filings describe an expansion into management, marketing, construction, and design "verticals" that the debtors said consumed liquidity and were subsequently wound down.

DIP financing terms. The DIP Motion seeks approval for a $35 million senior secured DIP facility led by Lapis Municipal Opportunities Fund V LP, including up to $10 million available under an interim order and up to $25 million of delayed draw availability after a final order. The DIP credit agreement sets interest at 10.50% per annum with a 3% default-rate premium. Fees include a 1.00% commitment fee paid in kind, a 1.00% exit fee, and a $700,000 break-up fee. The maturity date is initially 365 calendar days after the petition date, with two successive six-month extension options for a 0.50% fee each. The facility is secured by liens on substantially all assets of the DIP borrowers and guarantors, excluding avoidance actions and equity interests, and provides superpriority administrative claims with priming liens on encumbered collateral. A nine-month budget governs the facility, with receipts required to meet at least 80% of forecast and disbursements limited to no more than 120% of forecast.

DIP milestones and sale process timeline. The DIP Motion proposed milestones tied to the petition date, including a final order within 35 days and transaction milestones tied to a sale or financing process. The court entered an Interim DIP Order on February 6, 2026. The milestones include a transaction motion within 45 days, bidding procedures within 75 days, an auction within 150 days, a transaction approval order within 165 days, and consummation within 270 days of the petition date.

DIP marketing process. The DIP Declaration reports that Raymond James was engaged on August 21, 2025 to run a marketing process that reached 29 potential lenders, produced 13 NDAs, and generated three term sheets, with Lapis selected as the preferred lender.

Cash management and operating continuity. The Cash Management Motion describes roughly 320 total bank accounts (273 debtor accounts and 47 third-party manager accounts) across a multi-bank network that includes Bank of America, Wells Fargo, Western Alliance, and other regional banks. The debtors seek a waiver or extension of Bankruptcy Code Section 345(b) requirements and authority to continue existing cash-management practices. The filings also describe a reliance on third-party managers for day-to-day operations at the communities, with a request to honor and maintain management agreements.

Lease rejections and corporate footprint rationalization. The Lease Rejection Motion seeks to reject certain office leases effective as of the petition date, including properties in Scottsdale, Arizona and Southlake, Texas, and related service contracts.

Portfolio Footprint and Asset Characteristics

The First Day Declaration describes 33 operating senior living facilities across 14 states, including 444 independent living units, 1,897 assisted living units, and 776 memory care units. The company's announcement cited a slightly larger footprint of 35 communities in 14 states, and the filings report a resident base of about 2,620.

Portfolio examples from recent transactions. Public announcements around specific acquisitions illustrate the types of assets that moved through the IHC and DST platform. In 2024, Life Care Properties announced the sale of The Blake at New Braunfels, a 112-unit assisted living and memory care community that opened in 2021. A 2022 DST offering disclosed the acquisition of a 195-unit assisted living and memory care community in Hamilton Township, New Jersey for $74.2 million. Other publicly reported transactions include the acquisition of The Landing of North Haven for $41 million and the purchase of The Heritage at Delray for $52.3 million.

Growth Strategy and Capital Raising Before Bankruptcy

Inspired Healthcare Capital's pre-bankruptcy growth strategy relied on DST structures and private-placement funds to acquire and develop senior living communities. The company said it fully subscribed a 1031 DST offering that raised $56.35 million of equity for a Hamilton, New Jersey assisted living and memory care community, and it acquired The Landing of North Haven through another DST transaction. Industry coverage also noted IHC's 12 acquisitions in 2022 totaling 13 communities and 1,366 units, representing about $400 million in acquisition volume.

A development-focused vehicle also played a role in the capital program. IHC reported that its Development Fund I invested in 10 assisted living properties, fully cycled in March 2024, and generated a 15.23% internal rate of return for 240 investors, with approximately $287 million in gross proceeds.

Management and Operator Context

Volante Senior Living is the operating platform tied to the Inspired Healthcare portfolio. The company says it was founded in 2016 and provides independent living, assisted living, and memory care services. Its website lists communities in multiple states, including Reserve at Lake Austin and Inspira Arrowhead, reflecting a footprint that overlaps the broader IHC portfolio.

Leadership changes occurred in the period leading into the SEC review. Volante announced in August 2024 that it named Jeff Fischer as chief executive officer. Industry coverage later reported that Fischer departed after roughly one year in the role. Separately, IHC said it halted new DST offerings and stopped distributions while under SEC review and began winding down Volante as part of that response.

IHC's website lists a corporate address in Scottsdale, Arizona, where the debtors' filings also describe centralized finance and cash-management functions.

Industry Backdrop: Senior Living Occupancy and Pricing

Industry data from 2025 showed occupancy recovery and steady rent growth for senior housing operators. National senior housing occupancy rose to 88.7% in Q3 2025, with independent living occupancy at 90.2% and assisted living occupancy at 87.2%. The same report cited annual rent growth of roughly 4.3% across independent and assisted living.

Long-term demand drivers remain tied to U.S. demographics. The Administration for Community Living reported that the U.S. population age 65 and older reached 58 million in 2022, representing 17.3% of the population.

Key Dates and Upcoming Milestones

Frequently Asked Questions

When did Inspired Healthcare Capital Holdings, LLC file for chapter 11?

The company filed for chapter 11 on February 2, 2026, in the U.S. Bankruptcy Court for the Northern District of Texas.

Where is the case pending and what is the case number?

The case is pending in the U.S. Bankruptcy Court for the Northern District of Texas under Case No. 26-90004, with Inspired Healthcare Capital Holdings, LLC as the lead debtor.

How large is the senior living portfolio in this case?

The First Day Declaration describes 33 operating communities across 14 states, while the company's filing announcement cited 35 communities in 14 states serving about 2,620 residents.

What is the DIP financing package and who is the lender?

The DIP Motion seeks approval for a $35 million senior secured DIP facility led by Lapis Municipal Opportunities Fund V LP, including up to $10 million available under an interim order and up to $25 million of delayed draw availability after a final order. The proposed facility carries a 10.50% annual interest rate, a 3% default premium, and an initial maturity date 365 calendar days after the petition date, with extension options.

Why did the company enter chapter 11?

The First Day Declaration cites underperformance at certain communities, NOI shortfalls against master lease obligations, and the liquidity effects of supporting master rent. Filings also cite the SEC investigation that began April 30, 2025, which led to the suspension of investor distributions in June 2025 and debt service payments in October 2025.

What is the role of third-party managers in operations?

The debtors use third-party management companies to handle day-to-day operations at the communities, including staffing, resident services, billing, and compliance. The Third-Party Managers Motion requests authority to maintain those agreements and enter new management contracts as needed.

What are the next key milestones in the case?

The debtors propose a timeline tied to the petition date that includes interim DIP approval within three days, a final DIP order within 35 days, a transaction motion within 45 days, and an auction within 150 days. A 341 meeting is scheduled for March 16, 2026.

Who is the claims agent for Inspired Healthcare Capital Holdings, LLC?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

For more on current chapter 11 cases, visit ElevenFlo's bankruptcy blog.