A U.S. Bankruptcy Court approved the sale of eight of Guardian Healthcare’s nursing facilities to GBK Eight LLC on Wednesday. This follows Guardian’s completion of the transfer of operations at 11 skilled nursing facilities to Oxford Valley Health on Tuesday.

“All the facilities remain open and are focused on delivering quality care, ensuring the health and safety of residents, and assisting families. The sale is expected to occur in the near future,” Guardian noted on its website. “We believe this transition will enhance the resources available to these facilities, and we appreciate the dedication and care our employees continue to deliver every day. Guardian leadership is looking forward to working with GBK Eight LLC and maintaining open lines of communication with our employees, residents, and their families throughout this process.”

On July 29, Guardian Elder Care at Johnstown, Richland Healthcare and Rehabilitation Center and certain of its affiliated entities filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Pennsylvania. Nineteen skilled nursing facilities were included in the Chapter 11 filing.

Meanwhile, back in February, Omega Healthcare Investors (NYSE: OHI) began discussions to re-lease six buildings – five in Pennsylvania and one in West Virginia – from Guardian to a different operator. 

Last year, Guardian managed 35 facilities in these two states.

Omega, the Maryland-based real estate investment trust (REIT), said in its third quarter earnings call that it transitioned the six facilities in April to a new operator, following ongoing rent issues with Guardian since 2022. The parties agreed to an initial annual contractual rent of $5.5 million. 

“We’re assuming the new operator of the Guardian Transition Properties continues to pay $2.9 million in rent per quarter consistent with the third quarter,” executives said during the REIT’s conference call on Thursday.