HCR ManorCare CEO Steps Down as QCP Extends Receivership Deadline

BETHESDA, Md. — Paul Ormond has stepped down as chairman, president and CEO of skilled nursing and assisted living provider HCR ManorCare. Steve Cavanaugh, the company’s executive vice president and chief operating officer, was appointed to fill the roles of president and CEO.

The company’s landlord — Bethesda-based Quality Care Properties (NYSE: QCP) — is attempting to put ManorCare into receivership for $385 million in unpaid rents. QCP has extended ManorCare’s deadline to respond to the receivership complaint to Oct. 18. The extension will allow the two companies to continue possible negotiations.

According to QCP, ManorCare has paid approximately $17.6 million in rent for September and approximately $23 million in rent for August.

The restructuring advisory firm of Alvarez & Marsal, on behalf of QCP, is expected to work alongside HCR ManorCare's restructuring advisory firm, AlixPartners, to support ongoing discussions. The advisory firms of Houlihan Lokey and Lazard are also advising QCP in both the discussions and for remarketing activities for QCP facilities leased to HCR ManorCare.

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