HCR ManorCare gets another extension
12/4/2017Toledo’s HCR ManorCare Inc., which runs eldercare properties owned by a Maryland real estate investment trust, has been given yet a fourth time extension to explain why it should not be placed under the control of a court-approved receiver.
Bethesda-based Quality Care Properties Inc. said Monday that it has agreed to give the Toledo firm until Jan. 15 to respond to its receivership request filed last Aug. 17 in California Superior Court. Most recently, HCR ManorCare had until Dec. 1 to respond.
But Quality Care said it was extending the deadline once more to give the two parties further time to negotiate a restructuring of HCR ManorCare’s lease agreement with the real estate trust. Quality Care owns the 239 nursing homes and assisted-living facilities run by the Toledo firm, which has 50,000 employees nationwide including 1,700 in the Toledo area.
The time extension is subject to court approval.
In a brief statement, HCR ManorCare spokesman Julie Beckert said the Toledo company is “continuing to work with QCP on a solution.” Quality Care Properties did not respond to a request for comment on the latest time extension.
As ManorCare’s landlord, Quality Care contends that the Toledo firm contractually owes it about $385 million in future rent under the terms of a master lease signed by the parties in April, 2011, and reaffirmed in February, 2013. The real estate trust claims its lease allowed it to place ManorCare in receivership if it defaulted on its monthly rent of $39.5 million.
Quality Care claimed ManorCare defaulted on its lease last June. However, ManorCare has been attempting to show good faith while the two parties negotiate to restructure the lease.
Quality Care has said ManorCare paid it $23 million in rent in August, $17.6 million in September, and $21 million in October.
In its statement Monday, Quality Care said it has received $19 million in rent for November from HCR ManorCare.
Contact Jon Chavez at jchavez@theblade.com or 419-724-6128.