Deal to sell bankrupt nursing homes collapses

June 26, 2008 11:27:48 AM PDT
A deal to sell the bankrupt Haven Healthcare nursing homes has collapsed two weeks after it was announced, forcing state officials to devise a new plan to operate the chain. State Attorney General Richard Blumenthal says Formation Capital LLC of Alpharetta, Ga., notified the state late Wednesday that it was pulling out of the $85 million deal to take over 15 of Haven's homes in Connecticut and 10 in other New England states.

He says a reason was not given.

A message seeking comment was left Thursday with Arnold Whitman, chief executive of Formation Capital. The private equity firm announced the deal June 12.

Blumenthal says a back-up plan would be to turn over the homes to three secured creditors who provide financing for Haven.

CapitalSource, Nationwide and Omega Healthcare Investors would oversee the homes using operators approved by the state.

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Information from: The Hartford Courant, http://www.courant.com


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