HUNT VALLEY, Md. — Omega Healthcare Investors Inc. (NYSE: OHI), a Maryland-based healthcare REIT and owner of a large seniors housing portfolio, has canceled its restructuring agreement with Orianna Health Systems.
Orianna’s parent company, 4 West Holdings, declared bankruptcy in March. Omega at the time announced its support for Chapter 11 restructuring of the company under a plan where Omega would sell 19 of its 42 Orianna-operated facilities, while transitioning the remainder to new operators.
“[Omega] will be considering and/or pursuing alternative courses of action to protect our assets and shareholder value,” says Taylor Pickett, Omega’s CEO.
“While we are frustrated that the restructuring of the Orianna portfolio could not be concluded in accordance with the restructuring support agreement negotiated with Orianna and its plan of reorganization, we continue to believe that final resolution will result in our previously stated range of $32 million to $38 million of rent or rent equivalents from the assets that constituted our Orianna portfolio.”
Omega’s entire portfolio of Orianna-operated properties in Mississippi has already successfully been moved over to a new operator that already manages some other Omega facilities. The annual rent for the Mississippi portfolio will be $12 million.
“[Omega] is also progressing with the transition of the remaining previously announced facilities and expects this process to conclude in the next few months,” according to a press release from the company.