Sunrise Senior Living, Inc. (NYSE: SRZ) announced this week that it entered into a restructuring agreement, in the form of a binding term sheet, with Capmark Finance Inc. and Natixis, London Branch, two lenders of Sunrise and certain of its affiliates, to settle and compromise their claims against Sunrise and certain of its affiliates, including under operating deficit and principal repayment guarantees provided by Sunrise and certain of its affiliates in support of Sunrise’s German subsidiaries. Capmark Finance and Natixis contended that these claims had an aggregate value of approximately $121.6 million and the claims being settled represent approximately 77.5 percent of the aggregate amount of claims asserted by the lenders that may elect to participate in the restructuring transaction.
Sunrise also announced that it entered into agreements with Sunrise’s joint venture partner in the Fountains portfolio, as well as with HSH Nordbank AG, New York Branch, the lender to the Fountains venture, to release Sunrise from all claims that the joint venture partner and HSH Nordbank had against Sunrise prior to the date of the agreements and from all future funding obligations of Sunrise in connection with the Fountains portfolio.
"We are pleased that, after having previously exited Trinity Hospice, Greystone and Aston Gardens, substantially reduced our overhead run rate, stabilized our liquidity by selling assets and extended our credit line, we have now successfully restructured our Fountains portfolio and the bulk of our corporate obligations relating to Germany," said Mark Ordan, Sunrise’s chief executive officer. "We have been following a plan to discontinue non-core operations and keep Sunrise focused as the premier senior living care provider."