A federal bankruptcy judge on Friday approved HCR ManorCare’s plan to emerge from bankruptcy under the ownership of its landlord, Quality Care Properties (NYSE: QCP).
Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware gave the sign-off on the prepackaged Chapter 11 plan, which will see the Bethesda, Md.-based QCP lose its status as a real estate investment trust (REIT).
The action means ManorCare is the largest long-term care chain to go through the process over the last decade, according to Reuters; the Toledo, Ohio-based company, which operates 295 skilled nursing and assisted living facilities, will also become the first to be taken over by its landlord.
Under the new management team, led by Guy Sansone of advisory firm Alvarez & Marsal, ManorCare will begin the process of selling off 74 facilities, as previously reported. Sansone will become ManorCare’s new CEO, QCP announced last month, with Laura Linynsky taking over as interim chief financial officer. Linynsky currently serves as QCP’s senior vice president, and was formerly the chief operating officer of Sunrise Senior Living.
The judge’s approval also means that former CEO Paul Ormond’s sizable payout will go forward as planned, with Reuters pegging the final total at $116.7 million.
Written by Alex Spanko