CHICAGO — A bankruptcy court judge in Chicago will be asked next week to approve a $53.5 million cash offer to purchase the assets of the Clare at Water Tower continuing-care community in a deal that provides holders of the facility’s $229 million of debt with a recovery rate of at least 20 cents on the dollar, sources said.

Harrison, N.Y.-based Senior Care Development LLC, in partnership with Fundamental Advisors LLP and Life Care Companies LLC, won the bidding at an auction Thursday to purchase the assets of the upscale facility in downtown Chicago from its sponsors, the Franciscan Sisters of Chicago Service Corp.

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