Operator of several SA senior-care centers files for bankruptcy
Senior Care Centers LLC, a skilled nursing and senior living provider with more than 100 facilities in Texas and Louisiana — including 10 in San Antonio — has filed for Chapter 11 bankruptcy protection. Company officials have attributed the financial challenges to “burdensome debt levels” and “expensive leases.”
For now, that decision is not expected to affect the operation of the Dallas-based company’s facilities. However, the ownership of roughly half of those centers is in flux. Senior Care Centers operates 10 facilities in San Antonio. It also operates centers in New Braunfels, Bandera and Fredericksburg, as well as other Texas cities.
Irvine, California-based Sabra Health Care REIT (Nasdaq: SBRA) owns 38 facilities operated by Senior Care Centers. On Dec. 6 Sabra issued Senior Care Centers notices of default and lease termination for not paying rent. Sabra also announced that it entered into an agreement with an undisclosed buyer to sell its 36 skilled nursing facilities and two senior housing communities operated by Senior Care Centers for $385 million. It was not immediately clear how many, if any, of those facilities are in San Antonio. Sabra indicated that it expects the deal to close by early 2019.
“We are pleased with the progress we have made on our planned disposition of the Senior Care Centers Facilities,” Sabra CEO Rick Matros said in a statement. “We do not expect Senior Care Centers’ bankruptcy filing to have a substantive impact on our disposition of the Senior Care Centers facilities.”
Meanwhile, Westlake Village, California-based LTC Properties, Inc. (NYSE: LTC), which leases 11 skilled nursing centers in Texas to Senior Care Centers, said on Dec. 5 it too had not yet received rent for the month. LTC has requested a consensual termination of the lease agreement with Senior Care Centers and is in discussion with another Texas operator to potentially take over the facilities under similar lease terms.
The Business Journal confirmed with LTC that those facilities are not in San Antonio.
Michael Beal, chief operating officer for Senior Care Centers, said the bankruptcy filing “allows us to address certain financial issues while continuing to provide the critical care and support on which our residents rely while we work to transition certain communities to new operators.”