Last week the CEO of Sunwest Management filed for personal bankruptcy as part of an effort to restructure the company. The turnaround consulting firm, Hamstreet and Associates of Portland, Ore., took over Sunwest Management and filed the Chapter 11 bankruptcies last week for different entities affiliated with Sunwest Management. The most interesting part of this is that investors and lenders appear to be targeting the CEO personally with lawsuits ranging from the personal guaranties on the loans to lawsuits filed on behalf and by disgruntled investors. While bankruptcy is never a great solution, it will provide some time for the company’s consultants to evaluate the situation and propose solutions on restructuring the company and more importantly figure out how to continue to provide care to the residents in those facilities. The biggest question will be whether that restructuring will be palatable to the lenders and investors of Sunwest.
For more information on the bankruptcies, click here for the full article from the Oregonian.