Omega Healthcare Discloses Chapter 11 Bankruptcy for Operator Genesis Healthcare

Dow Jones
2025/07/10
 

By Denny Jacob

 

Omega Healthcare Investors said its operator, Genesis Healthcare, filed for Chapter 11 bankruptcy protection.

The real estate investment trust focused on the long-term healthcare industry said the filing, issued in the Northern District of Texas - Dallas division, is a necessary and important step "in creating an entity that is operationally solvent and sustainable, with enhanced liquidity and a strengthened balance sheet."

Omega said it's committing $8 million to fund the roughly 27% of the expected debtor-in-possession financing to support sufficient liquidity and effectively operate its facilities during bankruptcy.

Omega noted that Genesis paid its contractual rent in July. It also said it believes the current cash flow generated by its Genesis portfolio is sustainable and will support its contractual rent.

During the period of bankruptcy protection as part of its debtor-in-posession loan commitment, Genesis is required to pay Omega its monthly contractual rent, said the REIT. Omega added that the proposed DIP budget, which provides for Genesis rent, anticipates confirmation of the plan or sale of assets by the end of 2025 or early 2026, but it noted that this and all other aspects of the bankruptcy filing process remain subject to bankruptcy court approval and other elements associated with Chapter 11 proceedings.

 

Write to Denny Jacob at denny.jacob@wsj.com

 

(END) Dow Jones Newswires

July 10, 2025 09:49 ET (13:49 GMT)

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