Care Investment Trust Inc. (NYSE: CRE) (“Care” or the “Company”) announced last week that its Board of Directors (the “Board”) has approved a Plan of Liquidation (the “Plan”) for the Company. The Plan is subject to approval by Care’s stockholders holding a majority of the Company’s outstanding shares of common stock. Care Investment Trust Inc. is a real estate investment and finance company investing in healthcare-related real estate and commercial mortgage debt and is managed and advised by CIT Healthcare LLC, a wholly-owned subsidiary of CIT Group Inc.
According to the SEC Filing, Care’s special committee and board of directors concluded that a liquidation at this time would be more likely to provide a greater return on your investment within a reasonable period of time than would be received through other alternatives reasonably available to the Company. Care’s filing stated that they did not feel as though it would be able to obtain debt financing through the capital markets on favorable terms in the near term because debt capital markets remain severely constricted. Care’s proxy provides a Q&A for shareholders that outlines some of the basics for shareholders.
Flint D. Besecker, Chairman of the Board, said, “I believe the decision made by Care’s board of directors to approve the plan of liquidation is advisable and in the best interests of the company and our stockholders. This decision is the culmination of a long and thoughtful process by Care’s board of directors. Based on the review of all other available alternatives, including continuing Care’s strategy of repositioning the company as an equity REIT, a sale or merger of the company, and divesting our assets through a portfolio sale, we believe that pursuing a plan of liquidation is the best way to return value to our stockholders within a reasonable period of time relative to our other available strategic alternatives.”