Cold Spring Acquisition, LLC, doing business as Cold Spring Hills Center for Nursing & Rehabilitation, operated a 588-bed skilled nursing and rehabilitation facility in Woodbury, New York, providing long-term care, dementia care, hospice, and rehabilitation services with approximately 500 employees and 2023 gross revenue of $75.5 million. Controlled by the Philipson family (Bent Philipson, principal owner; Avi Philipson, 24% stake/managing member), the company filed for Chapter 11 protection on January 2, 2025 in New York Southern (Case No. 25-22002) before Judge Sean H. Lane after suffering severe COVID-19 impacts including mandatory acceptance of COVID-positive patients, a December 2022 New York Attorney General lawsuit alleging $22.6 million diversion of Medicaid/Medicare funds and "repeated neglect and inhumane treatment," census decline particularly among higher-revenue Medicare patients, and 1199SEIU restraining notices blocking access to Medicaid reimbursement. At filing, the facility had no secured debt but faced approximately $79.1 million in unsecured claims, including over $20 million in trade debt, a $21.8 million insider landlord claim from Cold Spring Realty Acquisition LLC (Philipson-controlled), $15 million in union fund claims, and $1.2 million in resident trust funds. Weekly operating losses of $350,000-$625,000 made continued operations unsustainable. The Debtors obtained a $4 million DIP revolving facility from CSHACQDIP, LLC at 5% interest. The facility was sold to 378Sywood LLC (Eliezer Jay Zelman) for $10 plus assumption of operating obligations including a $75.9 million Greystone mortgage, with the purchaser commencing operations as receiver on April 22, 2025. An examiner (Leslie A. Berkoff) was appointed to investigate prepetition insider transactions, and extensive Rule 2004 discovery of 20+ Philipson-affiliated entities is ongoing. An Amended Plan of Liquidation was filed October 14, 2025 and awaits confirmation.
