A health-care company under state scrutiny for its care of nursing home residents and financial dealings has declared bankruptcy.
Middletown-based Haven Healthcare Corporation filed under voluntary Chapter 11, which asks for protection from its creditors while it restructures. The company runs 25 nursing homes in New England, including 15 in Connecticut.
State Attorney General Richard Blumenthal has asked a federal bankruptcy court judge to appoint a trustee to take over Haven's nursing home operations in light of allegations of substandard care at the facilities and the company allowing bills to go unpaid while using assets to launch a Nashville record label.
Blumenthal says his office has been investigating Haven Eldercare for 6 months
"Our investigation into fraud and other illegality will continue and possible sanctions may be imposed but today we are seeking to protect patients and funds that belong to taxpayers under the control of these 15 nursing homes by appointing a trustee that will take over and completely replace present management."
A hearing will be scheduled in the next week. If Haven Healthcare contests the need for a trustee, Blumenthal says his office is prepared to offer up evidence showing the company has abused public trust and mismanaged the corporation.
Messages left with Haven Healthcare for comment were not returned.