ManorCare CEO Rumored to Demand $100 Million Payout

Skilled nursing provider HCR ManorCare and its primary landlord, real estate investment trust Quality Care Properties (NYSE: QCP), faced a one-two punch of bad news Monday, with the provider failing to make rent and rumors swirling about its CEO’s demands for a generous compensation package.

QCP announced in an 8-K filing that HCR ManorCare came up short on rent this month, claiming that the Toledo, Ohio-based provider paid just $15 million of the $32 million due on June 1.

The news came just a few days after the New York Post, citing unnamed sources, reported that HCR ManorCare CEO Paul Ormond had demanded the immediate payment of a $100 million deferred settlement he received as part of a private-equity takeover 10 years ago — with QCP claiming that such a hefty payday would bring financial ruin to the struggling provider, which cited lower profit projections and pressure from other creditors when attempting to explain its late rent payment.

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For full coverage of HCR ManorCare’s rent woes and Ormond’s purported demand, check out the full coverage on Skilled Nursing News.

Written by Alex Spanko

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