Regional Health Properties, Inc. Enters into a New Amended and Restated Forbearance Agreement with Pinecone Realty Partners II, LLC
January 07, 2019 at 04:10 pm EST
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On December 31, 2018, Regional Health Properties, Inc. and certain of its subsidiaries entered into a new amended and restated Forbearance Agreement with Pinecone Realty Partners II, LLC pursuant to which Pinecone agreed, subject to the terms and conditions set forth in the A&R New Forbearance Agreement, to forbear for a specified period of time from exercising its default-related rights and remedies (including the acceleration of the outstanding loans and charging interest at the specified default rate) with respect to specified events of default (the “Specified Defaults”) under the Loan Agreement, dated as of February 15, 2018, among the Company and certain of its subsidiaries and Pinecone (the “Loan Agreement”). As previously reported, the Company and certain of its subsidiaries entered into forbearance agreements with Pinecone with respect to the Loan Agreement on May 18, 2018 (the “Original Forbearance Agreement”) and again on September 6, 2018 (the “New Forbearance Agreement”). However, as previously reported, the forbearance period under the Original Forbearance Agreement terminated on July 6, 2018 and the forbearance period under the New Forbearance Agreement terminated on December 31, 2018 because the Company did not satisfy certain conditions set forth therein. The forbearance period under the A&R New Forbearance Agreement is from December 31, 2018 to March 14, 2019, unless the forbearance period is earlier terminated as a result of specified termination events, including a default or event of default under the Loan Agreement (other than any Specified Defaults) or any failure by the Company or its subsidiaries to comply with the A&R New Forbearance Agreement.
Regional Health Properties, Inc. is a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior living. The Company operates through two segments: Real Estate segment, which consists of owning and leasing/subleasing healthcare facilities, predominantly skilled nursing facilities (SNFs) and assisted living facilities (ALFs), to third-party tenants, which in turn operate the facilities, and Healthcare Services, which consists of operating the healthcare facilities. The Company's primary business consists of acquiring and owning real estate property to be leased to third-party tenants in the healthcare sector. The Company has a geographically diverse portfolio of healthcare investments across the Southeast United States that offer a range of services, including skilled nursing, assisted and independent living and memory care.