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Skilled Nursing Operator Genesis Files for Chapter 11 Protection
Skilled nursing and senior living operator Genesis HealthCare, Inc. and its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division. The Kennett Square, PA-based company said the filing was undertaken to ensure it can continue operating seamlessly while also addressing legacy liabilities associated with previously divested operations.
The company, which operates more than 200 facilities across 19 states, has liabilities between $1 billion and $10 billion, McKnight’s reported. The filing includes a scenario under which an affiliate would acquire Genesis’ operations.
“We have much to be proud of for the tremendous progress we have made as an organization over the last several years as we have implemented a forward-looking, enterprise-wide shift from centralized to market-based operations,” said executive chairman David Harrington. “Our ongoing work has confirmed that, to maintain our momentum, we must address our legacy debt structure.”
