Assisted Living Files for Bankruptcy

Assisted Living Concepts Inc., one of the largest U.S. retirement-home chains, filed for bankruptcy protection after bondholders owning about 47% of its outstanding debt agreed to a reorganization plan.

The Portland, Ore.-based company listed $331.4 million in assets and $252 million in debts in Chapter 11 papers filed in U.S. Bankruptcy Court in Wilmington, Del.

Seven nursing-home operators filed for bankruptcy protection in the last two years as a result of changes in the way the U.S. government pays claims for Medicare.

Shares of Assisted Living, which had fallen 78% so far this year, rose 2 cents to 9 cents before trading was halted pending news of the bankruptcy filing.