Sunwest, Now Stayton SW Assisted Living, Wins Approval for Reorganization

Stayton SW Assisted Living, the senior living provider formerly known as Sunwest Management Inc., won court approval of its reorganization plan that sells assets in a transaction valued at $1.3 billion.

U.S. District Judge Michael Hogan in Eugene, Oregon, approved the company’s restructuring proposal yesterday after finding that the plan was feasible and provided the maximum value to the estate’s creditors, according to a company statement today.

Under the Oregon-based company’s plan, a joint venture of Blackstone Real Estate Advisors VI LP, Emeritus Senior Living and Columbia Pacific Advisors will buy 149 senior living facilities for about $1.3 billion including cash, securities and debt, according to the statement. Existing Sunwest investors have the choice of receiving cash or securities in the new company.

“I’m very pleased,” Chief Restructuring Officer Clyde Hamstreet said in the statement. “Now, we can focus our attention on closing the Blackstone transaction.”

That sale should be ready to close by Aug. 1, Hamstreet said.

The non-senior living assets, including apartments, office buildings and undeveloped land, will be put into a new entity that will be run by Sunwest’s receiver and liquidated, according to the statement. The proceeds will be distributed to the estate’s creditors and investors, the company said.

To contact the reporter on this story: Michael Bathon in Wilmington, Delaware, at mbathon@bloomberg.net.

• Tweet
• More
  • Business Exchange
  • Buzz up!
  • Digg
• Print
• Email