Genesis Healthcare Wins Court Approval for $1B Bankruptcy Sale
GENNQ is trading near its 52-week low of $0 (0.0% above the low) on light trading volume (0.2× avg).
Summary
Genesis Healthcare received bankruptcy court approval to amend its roughly $1 billion asset sale to 101 W. State Street, resolving last-minute disputes that had threatened to cut $100 million from the purchase price. The amended terms keep the price near $1 billion while increasing the net cash payment to Genesis by about $15 million. Genesis agreed to reduce a $97 million promissory note by $7.5 million and exercised an option to buy out a $30 million master lease on 22 Pennsylvania facilities, allowing the buyer to assume direct leases. In exchange, 101 W. State Street will pay $17.3 million in cash and provide a short-term note valued between $18 million and $19 million. The sale is expected to close Friday, with plan confirmation next week. This follows the August settlement with controlling investor Joel Landau, which cleared a major obstacle to the chapter 11 case.
At the time of this announcement, GENNQ was trading at $0.00 on OTC in the Life Sciences sector, with a market capitalization of approximately $175. The 52-week trading range was $0.00 to $0.30. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.