LTC Properties announced late Tuesday that the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division had approved a settlement agreement between the firm and its bankrupt tenants Senior Care Centers and Abri Health Services.
The settlement calls for a one-time payment of $3.25 million from LTC to Sabra/Abri in exchange for their cooperation and assistance in facilitating an orderly transition of the tenants’ 11 skilled nursing centers to affiliates of skilled nursing and rehab specialist HMG Healthcare. The payment and the transfer of operations are expected to occur on or about Oct. 1.
“With this settlement with the bankrupt lessee behind us, we look forward to growing our association with HMG Healthcare and having these properties leased to an operator of our choice,” Wendy Simpson, LTC Properties’ chairman and CEO, said in a press release. “We have had a long-standing relationship with the principals of HMG for over a decade and their involvement in reaching the settlement was instrumental.”
Senior Care Centers once operated more than 100 nursing homes in Texas and Louisiana and has been in and out of bankruptcy proceedings since 2018. Early this year, it became a fully owned entity of Abri Health Services, which in turn filed for Chapter 11 bankruptcy protection on April 16.
In March, LTC Properties sent a notice of default to Abri Health Services/Senior Care Centers for nonpayment of rent and additional charges owed under its master lease, according to the U.S. Securities and Exchange Commission.
