Genesis Healthcare Exits Chapter 11, Closes $1B Asset Sale to NewGen
Summary
Genesis Healthcare won confirmation of its Chapter 11 exit plan and closed the roughly $1 billion asset sale to 101 W. State Street, backed by New Generation Health. The deal was amended after the buyer sought a nearly $100 million price cut; the parties reduced a $97 million promissory note by $15 million and Genesis bought out a $30 million master lease on 22 Pennsylvania facilities, boosting net proceeds by about $5 million. The plan codifies a $150 million global settlement that lifts unsecured creditor recoveries to $217M-$248M from a $15M baseline, and includes a $24 million fund for personal-injury claims. This follows the October 8 court approval of the amended sale and the August settlement with controlling investor Joel Landau. The exit resolves a 15-month bankruptcy involving 299 debtor entities and over 170 senior living facilities.
At the time of this announcement, GENNQ was trading at $0.00 on OTC in the Trade & Services sector, with a market capitalization of approximately $122.8. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.