The owner of Orianna Health Systems, a national for-profit chain, filed for bankruptcy last week. Orianna will still own and operate the facilities during the bankruptcy proceedings. See http://www.omnimgt.com for more information.
Orianna owes $52 million in rent to Omega, a real estate investment trust or REIT, and $67 million to vendors and “related entities,” according to court records. Orianna is Omega’s largest tenant, according to securities filings. Omega has agreed to provide Orianna with up to $30 million in financing as the company goes through bankruptcy proceedings.
Orianna operates skilled nursing facilities in seven states, with around 4,500 beds and 5,000 employees. Clearly the owners siphoned off too much money to allow the facilities to operate properly. There is no reason a chain should go bankrupt unless mismanagement occurred.
4 West Holdings Inc, which operates as Orianna’s operating agent, reached a deal with its landlord Omega Healthcare Investors Inc and agreed to transfer 23 facilities to a new operator and provide for the sale of 19 others, according to court records.