Omega Healthcare Investors Supports LaVie Care Centers in Chapter 11 Bankruptcy

Omega Healthcare Investors, Inc. (NYSE: OHI) has provided an update on the LaVie Care Centers' restructuring, following LaVie's announcement of filing for Chapter 11 bankruptcy protection in the Northern District of Georgia. Omega has expressed its belief that the filing is a necessary step in creating an entity that is operationally solvent and sustainable.

In response to the bankruptcy filing, Omega has committed $10 million to fund 50% of the expected debtor-in-possession financing to support sufficient liquidity to effectively operate the facilities during bankruptcy. Omega has been working with LaVie for over a year to reduce its exposure to underperforming assets, and it believes this effort has meaningfully enhanced the operating performance of its LaVie portfolio.

The current cash flow generated by Omega's remaining LaVie portfolio is sustainable and is expected to support long-term annualized rent of $36 million, while also retaining sufficient cash within the business to provide for strong clinical care. As part of the debtor-in-possession loan commitment, LaVie is required to pay Omega monthly rent of $3 million related to the 30 properties it continues to lease from Omega, subject to court approval.

The proposed debtor-in-possession budget anticipates confirmation of the plan or sale of assets by the end of the year. However, all elements of the bankruptcy filing process are subject to the approval of the bankruptcy court and other complexities inherent in Chapter 11 proceedings.

Omega Healthcare Investors, Inc. is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. It operates a portfolio of assets in a triple-net lease structure across the US and in the UK. Today the company's shares have moved -0.0% to a price of $32.32. If you want to know more, read the company's complete 8-K report here.

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