Sunrise Senior Living Buys More Time With More Lenders

In the on-going Sunrise Senior Living financial saga, the Company (NYSE: SRZ) announced Monday that it had agreed with its lenders to an eleventh amendment to its Bank Credit Facility, further waiving compliance with  certain financial covenants until April 30, 2009. The eleventh amendments is designed to provide Sunrise and its lenders with more time to negotiate a twelfth amendment that matured December 2, 2009 and the company hopes to complete the process by April 30, 2009.  The extension suspends some of the financial covenants as part of the loan obligations and the Company expects its cash balances and cash flows to meet its obligations through April 30, 2009 with the amendments and the completed sale of the Company’s Greystone subsidiary.  The lenders include party to this amendment include  Bank of America, PNC National Bank, Wachovia Bank, Manufacturers and Traders Trust (Successor to First Horizon) and Chevy Chase, FSB.  Sunrise continues to remind its lenders in its filings that it thinks that lenders should continue to grant waivers and settlements to protect their interests.  Clearly a bankruptcy filing would be neither good for lenders or investors.

Could this eleventh amendment be a precursor to a Chapter 11 filing or a true pause before the 12th amendment?  Stay tuned…

For the full 8-K, click here or the press release, click here.