Kindred Healthcare enters into stipulation with Ventas on no adverse action until court hearing

By Sara Rosenberg

New York, June 20 - Kindred Healthcare Inc. has entered into a stipulation with Ventas Inc., preventing Ventas from taking any action adverse to Kindred's interests until the court hears Kindred's motion for a preliminary injunction, according to a company news release.

The stipulation also extends any operative cure periods until the earlier of three business days after the entry of a ruling by the court for injunctive relief or July 20.

On June 14, Ventas delivered a letter to JPMorgan, the agent on the Kindred credit facility, claiming that an event of default exists under the master lease agreements because of Kindred's refusal to turn over to Ventas its fair market rental appraisals in connection with a rent reset process. Ventas had given Kindred until July 9 to cure the default.

If Kindred is found to be in default under its master lease agreements it could potentially be in default under its $400 million amended and restated credit facility.

In reaction to the letter, Kindred filed a lawsuit seeking injunctive and declaratory relief, saying that Ventas' position is a meritless ploy designed to obtain materials to which it has no entitlement, so as to afford it an unfair advantage in the rent reset process.

The hearing is set for June 29.

Kindred is a Louisville, Ky.-based operator of hospitals, nursing centers, institutional pharmacies and a contract rehabilitation services business.

Ventas is a Louisville, Ky.-based health care real estate investment trust that currently leases 39 hospitals and 186 nursing centers to Kindred.

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