Filing Alert: Genesis HealthCare Chapter 11
Genesis HealthCare Files Chapter 11 in Northern District of Texas
Genesis Healthcare, Inc. and its debtor affiliates⁽¹⁾, a Kennett Square, PA-based operator of skilled nursing facilities, filed for Chapter 11 protection on Jul. 9 in the U.S. Bankruptcy Court for the Northern District of Texas.
Despite portfolio rationalization efforts beginning in 2017 and a 2021 recapitalization with ReGen Healthcare that narrowly avoided bankruptcy amid COVID-19 liquidity strains, the company grappled with insurmountable legacy liabilities from personal injury and wrongful death claims, cross-collateralization, and deferred capital expenditures. The debtors aim to maximize value through a section 363 sale of substantially all assets, backed by a $30 million junior DIP facility from term lenders and a stalking horse bid from ReGen affiliates.
The company reports $1 billion to $10 billion in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-80185.
⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Counsel:
- Marcus A. Helt
- McDermott Will & Emery LLP
- Email: mhelt@mwe.com
Financial Advisor / CRO:
- Ankura Consulting Group (Russell A. Perry)
Investment Banker:
- Jefferies, LLC
Claims Agent:
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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