Sunrise Senior Living, filed an SEC 8-K stating that on March, 5, 2009, Sunrise and some of its subsidiaries entered into a binding letter agreement to sell its outstanding stock, membership interests and partnership interests of Greystone Communities, Inc., Greystone Development Company, LLC and Greystone Development Company II LP and the seed capital partnerships for 5 properties located in Boise, Idaho, Carmel, Indiana, Fort Worth, Texas, Kirkwood, Missouri, and Elmhurst, Illinois. Greystone Partners II LP paid $1,500,000 in cash for the stock and membership interests and $500,000 for the seed capital partnerships along with some additional seller financing terms for each of the respective portions. The two parties have agreed to execute definitive documentation consistent with the terms of the Letter Agreement and to take all actions necessary to close the transaction by March 16, 2009.
So for $2 million bucks, Michael Lanahan and Paul Steinhoff, senior executives with the Greystone companies, will take control of the 5 properties and the assumption of liabilities for the facilities and will owe various seller financing for the different aspects of the facilities and seed capital partnerships. Is this an effort to raise quick cash, stem the cash flow drain from these properties or a combination of both?
If Sunrise files for bankruptcy in the next 30 days, what are the chances that this transaction could be unwound?
For the full 8-K and exhibits, click here.