California Palms Rehab Center to Remain Open After Bankruptcy Filing

A deadline to vacate the property at the Youngstown, Ohio-based California Palms Addiction Recovery Center has been averted due to a last-minute bankruptcy filing.

According to news sources, Attorney Sebastian Rucci said the recent bankruptcy filing was from California Palms LLC, owner of the building the recovery center uses for its operations.

Rucci also filed a notice with Mahoning County Common Pleas Court on Monday to alert Judge John Durkin of the bankruptcy filing, which Rucci said “stays any action” by Durkin in a months-long legal dispute between California Palms and its lender, Pender Capital. It means that the deadline for Rucci to vacate the property and remove all of the rehab center’s patients is no longer valid, according to a Rucci e-mail.  

He said the center “is free to operate and we are again accepting new patients.” He added that the rehab secured a $5 million loan from Polaris Equity, but Pender was not willing to give California Palms enough time to close on the refinancing, “prompting the filing of the Chapter 11.”

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