One of the nation’s largest nursing home companies, PACS (NYSE: PACS), has entered into a forbearance agreement with lenders as well as landlord Omega Healthcare Investors (NYSE: OHI), and is also undergoing a change in executive leadership.

Effective as of Aug. 15, P.J. Sanford exited as PACS’ president, the company announced in a filing with the Securities and Exchange Commission (SEC). Farmington, Utah-based PACS has entered into an agreement with Sanford, under which he is available to provide the company with consulting services for up to 12 months. Sanford was with PACS for nearly a decade and served as vice president of finance until taking on the president position in January 2024, according to his LinkedIn profile.

Independent subsidiaries of PACS operate more than 300 post-acute and senior living facilities across the country.

The forbearance agreement with lenders relates to “Representation and Warranty Events of Default” that occurred, associated with compliance certificates that PACS delivered in 2024 and 2025. Other events of default were then triggered, including in the master lease that PACS has with Omega.

Truist Bank (acting as administrative agent), lenders and Omega all have agreed to forebear from “exercising rights and remedies” available to them due to the events of default through Oct. 31, 2025, with an extension possible until Nov. 30, 2025.

The forbearance agreement, as described in the 8-K filed on Aug. 15, was not meant to convey any intention on PACS’ part to reduce payments to lenders or Omega, the company clarified in an emailed comment to Skilled Nursing News.

Also on Aug. 15, PACS disclosed via an SEC filing that the company will not be able to file its quarterly report for the period ended June 30, 2025, by the prescribed due date. This is the latest notification of late filing to arise as the result of an internal investigation into allegations of improper referral and reimbursement practices that were made by the now-defunct Hindenburg Research.

In June 2025, PACS announced that it did overstate Medicare Part B billings over two quarters in 2024 and will restate previously issued financial statements.

“The Company is diligently working to restate the Prior Financial Statements as soon as practicable,” PACS stated in the Aug. 15 Notification of Late Filing.