Sunrise Senior Living, Natixis agree to payment demand standstill

By Caroline Salls

Pittsburgh, Dec. 24 - Sunrise Senior Living, Inc. has entered into a pre-negotiation and standstill agreement with subsidiaries Sunrise Hannover Senior Living GmbH & Co. KG and Sunrise Hannover GmbH and lender agent Natixis, London Branch, following a Dec. 18 loan payment demand, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Specifically, Sunrise said Natixis sent a letter on Dec. 18 demanding that the company pay €11.22 million in connection with a cash flow deficit on its funding obligations.

Under the standstill agreement, the agent has agreed to begin negotiations regarding some of the company and the subsidiaries' obligations under the loan and related funding obligations.

In addition, Natixis has agreed not to enforce its payment demand until the later of 60 calendar days after the date of the standstill agreement and the termination date of any agreement with Bank of America, NA relating to Sunrise's credit facility with Bank of America.

However, the standstill agreement will expire on March 31, at the latest.

Sunrise also entered into a standstill agreement governed by the laws of the Federal Republic of Germany. The German standstill agreement includes the same expiration dates as the other agreement.

In addition, Sunrise said its board of directors has approved a change in the duties of Tiffany Tomasso, who moved from her post of chief operating officer to become the head of European operations, effective Dec. 22.

Sunrise is a McLean, Va.-based operator of senior living communities.

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