HCR ManorCare Inc. announced this month that the company has reached an agreement to be acquired by Quality Care Properties, Inc.
Under the terms of the transaction, HCR ManorCare will voluntarily file for Chapter 11 bankruptcy while its operating subsidiaries will not have their operations affected.
These corporate changes follow a series of disputes between HCR ManorCare and the company’s landlord Quality Care Properties, relating to allegations of deferred rent obligations and unpaid rent.
Changes to HCR ManorCare’s leadership are also expected. Guy Sansone, managing director and chairman of the Healthcare Industry Group at the firm Alvarez and Marsal, and Laura Linynsky, senior vice president at Quality Care Properties will serve as consultants for the acquisition, and are expected to assume the roles of HCR’s chief executive officer and interim chief financial officer respectively upon the close of the transaction.
Pending bankruptcy court approval in the second quarter, the acquisition is expected to be completed in the Third Quarter of 2018.