The Fallout of Financial and Legal Turmoil
Cold Spring’s descent into bankruptcy began in January, burdened with at least $58 million in debt. The company’s troubles deepened after a 2022 lawsuit from the New York Attorney General’s office accused the facility of providing substandard care, causing a mass exodus of residents and compounding its pandemic-driven financial distress.
With Sywood now at the helm and plans in place for a financial turnaround, the focus shifts to state regulators, who must approve the final sale. Until then, the facility—and its residents—remain in limbo.
Legal Teams Behind the Deal
- Cold Spring’s Legal Counsel: Schuyler G. Carroll, Russell E. Potter, and Thomas A. Whittington of Manatt Phelps & Phillips LLP.
- Sywood’s Legal Counsel: David M. Hillman of Proskauer Rose LLP.
- 1199SEIU’s Legal Counsel: Ryan J. Barbur and Jessica I. Apter of Levy Ratner PC.
With the sale back on track, Cold Spring’s future now rests in the hands of regulators—but for now, hundreds of elderly residents can breathe a sigh of relief.
