Last week, Sunwest Management announced that it has sold 45 senior living communities currently managed by Sunwest to a large, un-disclosed private equity investor. . The buyer has contracted with La Vida Communities, part of the Senior Resource Group family of companies, to manage the properties once ownership and license transfers are complete. The sale of those communities which gives the restructuring effort some funds to work with and the company can begin to start the process of negotiation with lenders, creditors, and investors.
The purpose of the sale is to provide funds for the restructuring effort currently underway at Sunwest. “The proceeds will put us in a stronger position both operationally and financially,” said Clyde Hamstreet, Sunwest’s Chief Restructuring Officer. “Sunwest will continue to meet its top priority of providing care and continuity of service to senior residents, while improving its ability to reorganize.”
Sunwest Management, Inc., also announced the resignation of Jon Harder,the President and CEO, and Curtis Brody has left the position of Chief Financial Officer. Along with his resignation as CEO, Mr. Harder is also leaving related positions as President of Senenet, Sunwest’s employee leasing company, and as Vice President of Canyon Creek Development, the company that acquired and developed both land and facilities as Sunwest grew. On December 31, Mr. Harder filed a voluntary personal petition under Chapter 11 of the Bankruptcy Code.