Regional Health Properties, Inc. and Certain of Its Subsidiaries Enters into a Forbearance Agreement with Pinecone Realty Partners II, LLC
July 25, 2018 at 01:40 am IST
Share
As previously reported, on May 18, 2018, Regional Health Properties, Inc. and certain of its subsidiaries entered into a Forbearance Agreement with Pinecone Realty Partners II, LLC pursuant to which Pinecone agreed, subject to the terms and conditions in the Forbearance Agreement, to forbear for a specified period of time from exercising its default-related rights and remedies with respect to specified events of default under the Loan Agreement, dated as of February 15, 2018, among the company, certain of its subsidiaries and Pinecone. The forbearance period under the Forbearance Agreement terminated as of July 6, 2018 because the company did not satisfy the condition in the Forbearance Agreement to enter into an agreement with Pinecone to support a transaction or series of transactions to remedy the Specified Defaults. Accordingly, as of such date, Pinecone is no longer required to forbear from exercising its default-related rights and remedies with respect to the Specified Defaults and may exercise all of its rights and remedies under the Loan Agreement (including the application of an additional 5% interest on the outstanding loans under the Loan Agreement and the acceleration of such outstanding loans). On July 18, 2018, the company received a letter from Pinecone in which it states that, as a result of the termination of the forbearance period under the Forbearance Agreement, Pinecone can accelerate its $16,656,250 in outstanding loans under the Loan Agreement and the company is obligated to pay interest on such loans at the default interest rate of 18.50% per annum.
Regional Health Properties, Inc. is a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term care. The Companyâs primary business consists of acquiring and owning real estate property to be leased to third-party tenants in the healthcare sector. The Company operates through two segments: Real Estate and Healthcare Services. The Real Estate segment 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. The Healthcare Services segment consists of operating healthcare facilities. The Companyâs portfolio of about 13 properties, across 12 facilities (one facility containing 2 co-located properties), 12 owned and one leased, comprising 1,300 licensed beds/units, is diversified across five states. Its portfolio is diversified by six licensed operators.