Jim,
SNH - Decided to look at it. This section of the SEC 10Q bothered me.
> SENIOR HOUSING PROPERTIES TRUST
Mariner Post-Acute Network, Inc., which leases 11% of our investments
and pays 18% of annual rents, reported a loss of $405.7 million for the quarter
ended June 30, 1999 and in October 1999 announced that it did not make interest
payment on its bank credit facility and some of its senior subordinated debt.
Integrated Health Services, Inc., which leases 29% of our investments and pays
30% of annual rents, reported a loss of $4.6 million for the quarter ended June
30, 1999 and in November 1999 announced that it did not make interest payment on
some of its senior subordinated debt. Genesis Health Ventures, Inc., which
leases 2% of our investments and pays 2% of annual rents, reported a loss of
$1.0 million for the quarter ended June 30, 1999. As of November 12, 1999, all
of these tenants were in compliance with their obligations to us.
One of our smaller tenants, The Frontier Group ("Frontier"), a
privately held company which leases 2% of our investments and pays 2% of annual
rents. Sun Healthcare Group, Inc. ("Sun Healthcare") is also obligated under
this lease. In July 1999 and October 1999, Frontier and Sun Healthcare,
respectively filed for reorganization under Chapter 11 of the Bankruptcy Code.
Currently, these nursing homes are being operated by a court appointed receiver.
We are negotiating to collect rent, including arrearages of approximately $1.1
million through November 1, 1999, from Sun Healthcare, Frontier or the receiver
and to find a substitute tenant or for a possible sale of the properties. Also,
we are preparing, if necessary, to operate these properties for our own account
until the properties are leased to a substitute tenant or sold to a third party. |
