8-K: Current report filing
Published on June 30, 2008
Exhibit 99.1
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PRESS RELEASE –FOR IMMEDIATE
RELEASE
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OMEGA
HEALTHCARE ANNOUNCES PLAN FOR HAVEN FACILITIES
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TIMONIUM, MARYLAND – June 27,
2008 – Omega Healthcare Investors, Inc. (NYSE:OHI) today announced
that as a result of the termination of a third party’s agreement to
acquire substantially all the assets of Haven Eldercare, LLC out of
bankruptcy, Omega and an experienced nursing home management team have
formed a new company to operate the 15 Haven facilities located on real
estate owned by Omega. The transition to the new operating
management team is subject to approval of the U.S. Bankruptcy Court, which
has jurisdiction over Haven’s assets. Omega expects the Court
to approve the new management team taking control based on Omega’s rights
as a lessor and a secured creditor under existing
agreements.
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“Given
the termination of a third party purchaser’s agreement to acquire the
assets of Haven out of bankruptcy, Omega worked swiftly and diligently to
retain an excellent and qualified team ready to assume management of the
facilities,” according to C. Taylor Pickett, Chief Executive Officer of
Omega. “The team will be led by Timothy Coburn. Tim has been in
health care facility management for 30 years as a senior member of several
national health care companies providing successful oversight to skilled
nursing facilities, assisted living facilities, sub-acute care facilities
including traumatic brain injury facilities and independent living
communities around the country. Over the past six years he has
been utilized as a manager of distressed health care properties on behalf
of the U.S. Bankruptcy Courts and the State of Connecticut Superior
Courts, as well as private investors. He was appointed Patient
Care Officer by the U.S. Bankruptcy Court for the Haven bankruptcy in
November of 2007, and is a licensed Nursing Home Administrator in
Connecticut and Massachusetts.
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“Omega plans to
provide both working capital and capital expenditure credit facilities to
the new provider so that the caregivers in these facilities can continue
doing what they do best and that is providing quality care for the
residents of these facilities,” continued Mr. Pickett.
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“Since the Haven
situation has been rapidly evolving, we have not completed our assessment
of the financial impact of these actions,” continued Mr.
Pickett. “We expect to be in a position to provide an overview
of the financial impact in connection with our second quarter earnings
announcement.”
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* * * * * *
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Omega is a real
estate investment trust investing in and providing financing to the
long-term care industry. At March 31, 2008, Omega owned or held mortgages
on 235 healthcare facilities located in 28 states and operated by 26
third-party healthcare operating companies.
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FOR
FURTHER INFORMATION, CONTACT
Dan
Booth, Chief Operating Officer or
Bob
Stephenson, Chief Financial Officer
at
(410) 427-1700
________________________
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This announcement includes
forward-looking statements. Actual results may differ
materially from those reflected in such forward-looking statements as a
result of a variety of factors, including, among other
things: (i) uncertainties relating to the business operations
of the operators of the Company's properties, including those relating to
reimbursement by third-party payors, regulatory matters and occupancy
levels; (ii) regulatory and other changes in the healthcare sector,
including without limitation, changes in Medicare reimbursement; (iii)
changes in the financial position of the Company's operators; (iv) the
ability of operators in bankruptcy to reject unexpired lease obligations,
modify the terms of the Company's mortgages, and impede the ability of the
Company to collect unpaid rent or interest during the pendency of a
bankruptcy proceeding and retain security deposits for the debtor's
obligations; (v) the availability and cost of capital; (vi) the Company's
ability to maintain its credit ratings; (vii) competition in the financing
of healthcare facilities; (viii) the Company's ability to maintain its
status as a real estate investment trust; (ix) uncertainties relating to
Haven's bankruptcy process, and (x) other factors identified in the
Company's filings with the Securities and Exchange Commission. Statements
regarding future events and developments and the Company's future
performance, as well as management's expectations, beliefs, plans,
estimates or projections relating to the future, are forward-looking
statements.
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