SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2012

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

13.  SUBSEQUENT EVENTS

On November 2, 2012, ALC announced that as part of an operational review of certain of its residences and taking into account the recommendation of its Facility Review Committee, it will be commencing a process to divest its seven owned residences in New Jersey, which as of September 30, 2012 had combined assets and liabilities of $18.8 million and $2.3 million, respectively. In the first three quarters of 2012, the New Jersey residences had revenues of $2.7 million and a pre-tax loss of $1.1 million.  At November 1, 2012, two of the seven residences comprising 78 units are closed and the remaining residences are 43% occupied.  If the New Jersey residences are divested, it is intended that the proceeds will be used primarily to pay down debt. The Board of Directors expects the process to be completed in the first quarter of 2013.  Although ALC has received expressions of interest in respect of the New Jersey residences and will be conducting a divesture process, no assurance can be given that such a divestiture will be completed, the timing or the amount of proceeds from the divestiture of such residences.  In addition, the Board is considering divestiture of certain closed and other underperforming residences.

On November 2, 2012, ALC also announced that a Special Committee of the Board would continue its strategic review process to explore corporate alternatives with a view to enhancing shareholder value.  No assurance can be given that the process will result in a transaction or, if a transaction is undertaken, the timing or the terms of any such transaction.