ManorCare Seeks Dismissal of QCP Receivership Case
After months of extensions, HCR ManorCare has finally responded to a receivership claim from its landlord — and the provider seeks to have the case dismissed.
Quality Care Properties, Inc. (NYSE: QCP) announced early Tuesday that tenant ManorCare had filed a motion to dismiss “certain claims in the receivership complaint,” according to a filing with the Securities and Exchange Commission.
“QCP intends to pursue available judicial paths, will object to HCR ManorCare’s request for dismissal of the receivership action, and will continue to pursue the receivership complaint,” the Bethesda, Md.-based real estate investment trust (REIT) reported in the filing.
Online court records for the Superior Court of California, County of Los Angeles — the venue for the ongoing dispute — did not show ManorCare’s filling as of Tuesday afternoon. The most recent document available was an acknowledgement of the updated January 26 deadline for ManorCare to respond, filed January 22 and approved by Judge Frederick C. Shaller.
The move comes after months of inertia between the two parties. QCP first filed for receivership back in August, granting multiple extensions to ManorCare along the way. The most recent deadline, last Friday, came and went without an announcement of either a deal or an extension.
The central issue in the case surrounds ManorCare’s ability to oversee its network of more than 500 skilled nursing facilities, assisted living communities, outpatient rehab clinics, and other care facilities as it navigates a perilous financial situation: ManorCare defaulted on its lease last summer after missing several rent payments.
In its initial filing in August, QCP maintained that ManorCare’s executives had too many conflicts of interest to effectively manage the chain; the SNF provider responded by calling the action “an insult to our frontline caregivers and the corporate staff who provide support to their coworkers in the field.”
A spokesperson for HCR ManorCare told SNN that the company has no comment on the most recent court filing. A representative from The Carlyle Group, the Washington, D.C.-based private equity firm that has owned ManorCare since 2007, did not respond to an e-mailed request for comment as of press time.
QCP stock dipped in Tuesday’s trading, closing at $13.01 — a drop of $0.52, or 3.9%.
Written by Alex Spanko