Post-acute senior care operator Genesis HealthCare has filed for Chapter 11 bankruptcy.
Genesis HealthCare operates 15 assisted living communities and senior living properties, according to its website. In court records reviewed by Skilled Nursing News, a Senior Housing News sister publication, Genesis faced “legacy liabilities.”
“During the first half of 2025, the company and its restructuring advisors engaged with key holders of the Company’s funded debt to negotiate the terms of a comprehensive solution. Following extensive, arm’s-length negotiations, the company today enters chapter 11 with a clear and defined exit path,” the bankruptcy filing states.
The company’s current potential buyer is affiliated with ReGen Healthcare, which is a current Genesis investor.
“The proposed transaction, the terms of which will be publicly disclosed shortly, is subject to higher bidding and court approval, and if approved, would result in the current affiliate acquiring the company’s operations,” the company said in a statement to SNN.
ReGen Healthcare and its affiliated investment firm, Pinta Capital Partners, were part of the restructuring and investment in Genesis in March 2021 when Genesis first narrowly avoided a bankruptcy, according to Skilled Nursing News.
Health care real estate investment trusts with senior living communities are taking different paths following the announcement of Genesis filing for Chapter 11 bankruptcy.
Omega Healthcare Investors (NYSE: OHI) continues to support Genesis Healthcare following the post-acute operator filing for Chapter 11 bankruptcy protection, with the real estate investment trust committing $8 million to fund debtor-in-possession financing.
That’s according to an Omega business update on Thursday, with the commitment to fund 26.7% financing needed to “support sufficient liquidity” for Genesis.
Despite the bankruptcy proceedings, Omega appears confident the Genesis portfolio is “sustainable and will support our contractual rent, while also retaining sufficient cash within the business to provide for strong clinical care.”
Genesis affiliates lease six skilled nursing centers in two states from LTC Properties (NYSE: LTC). In June, LTC received a written notice of a five-year lease extension by Genesis to extend to 2031, according to a news release shared Thursday.
LTC’s relationship with Genesis represented 4.5% of annualized revenue and 5.1% of contractual cash revenue as of March 31 of this year, the news release states.
This comes as questions of Genesis’ ability to pay contractual rent came in recent months. During its first quarter earnings call, Omega CEO Taylor Pickett said Genesis did not pay its $4.2 million rent, foreshadowing the current bankruptcy noting of “current liquidity issues.”
The post Post-Acute Operator Genesis HealthCare Files for Ch. 11 Bankruptcy appeared first on Senior Housing News.
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