LTC Enters Into Settlement Agreement With Senior Care Centers and Abri Health Services
August 31 2021 - 4:32PM
Business Wire
-- Transferring 11 Skilled Nursing Centers in
Texas to HMG Healthcare --
LTC Properties, Inc. (NYSE: LTC), a real estate investment trust
that primarily invests in seniors housing and health care
properties, announced today the United States Bankruptcy Court for
the Northern District of Texas Dallas Division approved a
settlement agreement between Senior Care Centers, LLC and Abri
Health Services, LLC, (the bankrupt entities and collectively, the
“Lessee”) and LTC and TXMS Real Estate Investments, Inc. (a wholly
owned subsidiary of LTC), among others.
The settlement provides for, among other things, a one-time
payment of $3.25 million from LTC to the affiliates of Lessee in
exchange for cooperation and assistance in facilitating an orderly
transition of 11 skilled nursing centers from the Lessee and its
affiliates to affiliates of Texas-based HMG Healthcare, LLC
(“HMG”). The payment and the transfer of operations are expected to
occur on or about October 1, 2021. The 11 properties will be leased
to HMG under a one-year master lease with rent based on cash flows,
and payment subject to a deferral of up to six months. LTC and HMG
intend to add these 11 properties to a master lease currently
existing between LTC and HMG after establishing a stabilized rent
rate during this first lease year. LTC has agreed to provide HMG a
secured working capital loan, the terms of which are currently
being negotiated. Additionally, LTC has agreed to indemnify the new
operator for expenses incurred, if any, related to certain
pre-transfer claims and liabilities.
“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. 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,” said Wendy Simpson, LTC’s Chairman and CEO.
“We are excited to be taking over operations at these skilled
nursing centers, allowing us to bring our premier healthcare
services to an increased number of patients throughout Texas, while
expanding our successful and long-standing relationship with LTC,”
said Laurence Daspit, Principal of HMG Healthcare. “Our dedicated
and compassionate employees work tirelessly every day to ensure
quality outcomes for the most vulnerable populations in Texas, and
we will continue that work in these 11 centers.”
About LTC Properties
LTC is a real estate investment trust (REIT) investing in
seniors housing and health care properties primarily through
sale-leasebacks, mortgage financing, joint-ventures and structured
finance solutions including preferred equity and mezzanine lending.
LTC owns or holds first mortgages on 176 properties in 27 states
with 31 operating partners. Based on LTC’s gross real estate
investments, the portfolio is comprised of approximately 50%
seniors housing and 50% skilled nursing properties. Learn more at
www.LTCreit.com.
About HMG Healthcare
Established in 2012, HMG Healthcare’s mission is to deliver
premier healthcare services, through dedicated and compassionate
employees accommodating individualized care needs. HMG Healthcare
currently owns and/or operates 29 seniors housing and care
properties in Texas and Kansas. With the addition of these 11
facilities, HMG will operate 40 seniors housing and skilled nursing
properties, caring for approximately 3,000 residents. HMG will
operate 35 properties in Texas.
Forward Looking Statements
This press release includes statements that are not purely
historical and are “forward looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding the Company’s expectations, beliefs,
intentions or strategies regarding the future. All statements other
than historical facts contained in this press release are forward
looking statements. These forward looking statements involve a
number of risks and uncertainties. Please see LTC’s most recent
Annual Report on Form 10-K, its subsequent Quarterly Reports on
Form 10-Q, and its other publicly available filings with the
Securities and Exchange Commission for a discussion of these and
other risks and uncertainties. All forward looking statements
included in this press release are based on information available
to the Company on the date hereof, and LTC assumes no obligation to
update such forward looking statements. Although the Company’s
management believes that the assumptions and expectations reflected
in such forward looking statements are reasonable, no assurance can
be given that such expectations will prove to have been correct.
The actual results achieved by the Company may differ materially
from any forward looking statements due to the risks and
uncertainties of such statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210831005988/en/
Wendy Simpson Pam Kessler (805) 981-8655
LTC Properties (NYSE:LTC)
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