Sunrise Senior Living SEC Filing Shows Lenders Are Knocking On The Door

Sunrise Senior Living, Inc. (NYSE: SRZ) (“the Company”) filed a 8-K last with with the Securities and Exchange Commission (SEC) that provided notice to its investors that it had received a demand letter from Natixis, London Branch, in its capacity as agent and security trustee in connection with loan agreements, dated March 24, 2006 (the “Loans”), executed by two subsidiaries of the Sunrise- Sunrise Munchen-Thalkirchen Senior Living GmbH & Co. KG (“PropCo”) and Sunrise Munchen-Thalkirchen GmbH (“OpCo”). Almost a week later, Sunrise executed two standstill agreements related to the loans and its funding obligations until the earliest of the following: (i) the abortion of negotiations by the parties, (ii) acceleration of the Loans based on certain events of default, (iii) commencement of insolvency proceedings with respect to OpCo, PropCo or the Company, (iv) termination of the Funding Standstill Agreement, or (v) March 31, 2009. As part of the standstill agreements, Sunrise agreed to take actions to enable the sale of the business associated with the loans. Is this the first of more demands and standstills? A more interesting question might be who would want to buy the business in the current economic environment and at what price?

For the full 8-K release, click here.