Bankrupt Gulf Coast Health Care Reaches Deals With Creditors

By Becky Yerak

Gulf Coast Health Care reached agreements with an unsecured creditors group, a bondholder group and a federal bankruptcy watchdog that were challenging the nursing facilities operator's chapter 11 financing and plans to transfer management duties.

Terms of the proposed deals include not allowing its key landlord, Omega Healthcare Investors, to immediately be allowed a roughly $35M damages claim, and permitting bondholders and the creditors committee to get a say on the damages claim.

Judge Karen Owens in the US Bankruptcy Court in Wilmington, Del., gave tentative approval to the deals late Wednesday afternoon, nearing the end of a multiday contested hearing.

Write to Becky Yerak at [e-mail]

(END) Dow Jones Newswires

11-24-21 1650ET