Here’s How Kennett Square’s Indebted Genesis Healthcare Is Charting a Path to Recovery

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As it charts a path to recovery, Kennett Square-based Genesis HealthCare will implement a three-part restructuring plan to strengthen its liquidity position and capital structure, according to a report from the Daily Local News.

The company will also delist from the New York Stock Exchange as a part of the restructuring plan.

Genesis will terminate its master lease that covers 51 facilities leased from Welltower affiliates and transition its operations to new operators. In return, the company will receive around $86 million, which it will use to repay part of its debt to Welltower.

Additionally, Genesis will receive about $170 million in debt reduction from Welltower after certain conditions are met, including the transition of the 51 facilities.

The company will also receive a capital infusion of $50 million from ReGen Healthcare.

According to the restructuring plan, Genesis will voluntarily delist from the NYSE and de-register its Common Stock.

“These restructuring transactions improve the financial and operational stability of the company significantly and build on the encouraging signs we are seeing as COVID-19 case rates continue to materially decline and residents, patients, and staff are vaccinated,” said Chief Executive Officer Robert Fish.

Read more about Genesis HealthCare in the Daily Local News here.

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