The pending sale of The Covenant at South Hills, currently in bankruptcy, will have to wait at least another month.

Lifecare of the South Hills LLC, an affiliate of Chester, W.Va., company Orchards at Foxcrest, bid $17 million to take over the Mt. Lebanon facility in May. The final court approval of the sale was scheduled for a hearing before U.S. Bankruptcy Court Judge Judith Fitzgerald on Tuesday.

However, because of difficulties lining up the financing, approval has been pushed back until Sept. 3.

Scott Fox, the CEO of the Orchards at Foxcrest, which proposes to both own and manage the property, said he's confident the financing will get done.

"In today's economic climate, getting traditional financing takes a lot longer that it did in the past," Mr. Fox said. "It's more of a timing issue. Rather than if, it's when."

The Covenant, a 7-year-old nonprofit affiliate of B'nai B'rith Housing Inc., filed for Chapter 11 bankruptcy in January when it could no longer make payments on bonds used to finance construction.

The bid by Lifecare of the South Hills at $17.3 million was the highest submitted in May. Other entities could still make additional bids for The Covenant before the sale is finalized.

The facility on Bower Hill Road includes 126 independent living units; 48 for assisted living; 12 memory care beds and 46 skilled nursing beds.

While most of The Covenant is at 95 percent occupancy, only about 90 of the 126 independent living units are occupied.

A large deposit -- ranging from $150,000 to $350,000 -- is required for those spaces, though it ensures continued housing and medical care for the remainder of the resident's life.

One of the biggest concerns, said Maurice Deul, president of the residents' council at The Covenant, is the loss of that deposit.

Under the original contracts, 90 percent of it was to be returned to the family after the resident died or moved out.

Because of the bankruptcy, Mr. Deul said, that is no longer the case.

"We may not recover anything. That is problematic."

He believes that Mr. Fox's company seems to be adequate, but he fears that the amount of the company's bid, along with the debt burden it will take on, will make it difficult to maintain services at the level expected.

"Promises don't mean much here," Mr. Deul said. "We, as residents, can't tolerate a second bankruptcy."

Under Mr. Fox's proposal, those residents who have already purchased a unit will continue in their contracts and in the same payment structure.

"We think it's really important these people have a sense of security."

In addition, Mr. Fox, of Sewickley, expects that the staff would be kept in place.

A few things would change. He is looking at energy savings with a new HVAC system, and will remove the entirely kosher kitchen -- a savings of $350,000 per year.

Mr. Fox noted that most of the residents at The Covenant do not require kosher meals. Those that do will still be able to have them through a catering service.

"We still intend to honor all the Jewish traditions they have at the facility," he said. "We like to think we're creating some stability."