Omega Healthcare Investors, Inc. Responds to LaVie Care Centers’ Chapter 11 Bankruptcy Filing

Omega Healthcare Investors, Inc. Responds to LaVie Care Centers’ Chapter 11 Bankruptcy Filing

HUNT VALLEY, Md., June 03, 2024– Omega Healthcare Investors, Inc. (NYSE: OHI) has issued a statement in response to LaVie Care Centers’ announcement of filing for Chapter 11 bankruptcy protection in the Northern District of Georgia.

Omega believes that this filing is a necessary step in creating a financially stable entity with enhanced liquidity and a strengthened balance sheet. The focus during this filing is on maintaining the quality of care for residents, supporting employees, and key vendors.

To support sufficient liquidity during bankruptcy, Omega has committed $10 million to fund 50% of the expected debtor-in-possession financing. The company has been working with LaVie for over a year to reduce exposure to underperforming assets, enhancing the operating performance of the LaVie portfolio.

As part of the debtor-in-possession loan commitment, LaVie is required to pay Omega monthly rent of $3 million for the 30 properties it leases. The proposed budget anticipates confirmation of the plan or asset sale by the end of the year, subject to court approval.

Omega Healthcare Investors, Inc. is a real estate investment trust that focuses on the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. The company’s portfolio of assets is operated by various healthcare companies in a triple-net lease structure.

For more information on Omega Healthcare Investors, Inc., visit www.omegahealthcare.com.

Contact:
Matthew Gourmand, SVP, Corporate Strategy & Investor Relations, at (410) 427-1705

Source: businesswire.com: https://www.businesswire.com/news/home/20240603650281/en/