Publish-acute senior care operator Genesis HealthCare has filed for Chapter 11 chapter.
Genesis HealthCare operates 15 assisted dwelling communities and senior dwelling properties, in accordance with its web site. In court docket information reviewed by Expert Nursing Information, a Senior Housing Information sister publication, Genesis confronted “legacy liabilities.”
“Through the first half of 2025, the corporate and its restructuring advisors engaged with key holders of the Firm’s funded debt to barter the phrases of a complete resolution. Following in depth, arm’s-length negotiations, the corporate as we speak enters chapter 11 with a transparent and outlined exit path,” the chapter submitting states.
The corporate’s present potential purchaser is affiliated with ReGen Healthcare, which is a present Genesis investor.
“The proposed transaction, the phrases of which will likely be publicly disclosed shortly, is topic to greater bidding and court docket approval, and if accredited, would end result within the present affiliate buying the corporate’s operations,” the corporate mentioned in a press release to SNN.
ReGen Healthcare and its affiliated funding agency, Pinta Capital Companions, had been a part of the restructuring and funding in Genesis in March 2021 when Genesis first narrowly averted a chapter, in accordance to Expert Nursing Information.
Well being care actual property funding trusts with senior dwelling communities are taking totally different paths following the announcement of Genesis submitting for Chapter 11 chapter.
Omega Healthcare Traders (NYSE: OHI) continues to help Genesis Healthcare following the post-acute operator submitting for Chapter 11 chapter safety, with the true property funding belief committing $8 million to fund debtor-in-possession financing.
That’s in accordance with an Omega enterprise replace on Thursday, with the dedication to fund 26.7% financing wanted to “help enough liquidity” for Genesis.
Regardless of the chapter proceedings, Omega seems assured the Genesis portfolio is “sustainable and can help our contractual lease, whereas additionally retaining enough money throughout the enterprise to offer for robust medical care.”
Genesis associates lease six expert nursing facilities in two states from LTC Properties (NYSE: LTC). In June, LTC obtained a written discover of a five-year lease extension by Genesis to increase to 2031, in accordance with a information launch shared Thursday.
LTC’s relationship with Genesis represented 4.5% of annualized income and 5.1% of contractual money income as of March 31 of this yr, the information launch states.
This comes as questions of Genesis’ potential to pay contractual lease got here in current months. Throughout its first quarter earnings name, Omega CEO Taylor Pickett mentioned Genesis didn’t pay its $4.2 million lease, foreshadowing the present chapter noting of “present liquidity points.”
