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.


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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