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Diversified Banking on Salem Deal to Pay Off Debt

ATLANTA-The manager/developer of multifamily senior housing units has an offer from Salem Senior Housing to buy Diversified's Residential Properties Management firm and equipment for $950,000. Diversified's chairman/CEO William G. Benton controls Salem Senior Housing.

By Alex Finkelstein | Updated on April 16, 2002

ATLANTA-Diversified Senior Services Inc. of Winston-Salem Inc. has an offer from Salem Senior Housing it can’t refuse because Diversified chairman/CEO William G. Benton controls Salem Senior Housing, according to a prepared statement from Diversified.

Salem wants to buy Diversified’s Residential Properties Management business for $950,000, with $700,000 in cash. That amount would pay off a debt to an undisclosed bank and improve Diversified’s cash flow position.

“This is an extremely critical matter to the company,” Benton says in the statement. “The bank, which is owed $625,000, is tying up about $3.8 million of our receivables as collateral.” The deal with Salem would free up the receivables for Diversified.

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