State, Department of Social Services, Division of Aging v. Colonial Healthcare Center, Inc.

PAUL M. SPINDEN, Judge.

When the Department of Social Services became aware that the licensed operator of Colonial Nursing Center, Inc., had not paid its payroll obligations for July 1998, it obtained an order from the circuit court placing Colonial in receivership. On August 4, 1998, the circuit court appointed Colonial Healthcare Center, Inc., as receiver pursuant to the Omnibus Nursing Home Act, § 198.003 et seq., RSMo 1994. The receiver desired to use Colonial’s accounts receivable to pay the missed payroll, but Colonial had pledged its accounts receivable as collateral for a loan from…