HCR ManorCare unit fails to pay $79.6 million, defaults on QCP lease

By Caroline Salls

Pittsburgh, July 21 – HCR ManorCare, Inc. indirect wholly owned subsidiary HCR III Healthcare, LLC has not paid $79.6 million in current and past due rent owed to Quality Care Properties, Inc. (QCP), triggering an event of default under the master lease between the parties and requiring immediate payment of an additional $265 million of deferred rent obligations, according to a QCP news release.

QCP said the default also allows it to terminate the master lease, appoint receivers or exercise other remedies related to any and all leased properties.

HCR ManorCare is in talks with QCP regarding the event of default and related matters, the release said.

In addition, in response to questions it has received from investors regarding the recently reported debt financing by HCR ManorCare, QCP said it did not assist with or participate in the negotiation or closing of that financing.

HCR ManorCare is a Toledo, Ohio-based provider of short-term, post-acute services and long-term care.

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