District Court Confirms Sunwest Plan of
$1.3 Billion Transaction Involving up to 149 Facilities to Follow
July 14, 2010 05:09 PM Eastern Daylight Time
EUGENE, Ore.--(EON: Enhanced Online News)--U.S. District Court Judge Michael Hogan yesterday confirmed
the debtor’s plan of reorganization in the Chapter 11 proceedings of Stayton SW Assisted Living, an Oregon-based
senior living provider formerly known as Sunwest Management. The plan provides for the sale of up to 149 senior
living facilities to a joint venture formed by Blackstone Real Estate Advisors VI L.P., Emeritus Senior Living and
Columbia Pacific Advisors (the “Blackstone / Emeritus joint venture”). The Blackstone / Emeritus joint venture will
acquire the properties in exchange for cash, securities and debt valued at $1.3 billion in cash.
The court found that the plan was feasible and that it would maximize value for the estate’s creditors and investors.
Existing Sunwest investors are permitted to receive either cash or securities in the new company, with a choice
between Class A preferred interests paying six percent, or up to 49 percent in common interests in the joint venture.
“I’m very pleased,” said chief restructuring officer Clyde Hamstreet. “Our team has been working day and night to
finalize loan modification agreements with secured lenders. They did an outstanding job to reach the point where
nearly all secured lenders support the plan. Now, we can focus our attention on closing the Blackstone transaction.
Over the next two weeks we will finalize the outstanding loan documents, complete preparations for the real estate
and licensing transfers, and determine which claimants have chosen to invest in the new company through the
Sunwest rollover member. We intend to be ready for closing by August 1.”
The reorganization plan also provides for the creation of a Trustco entity to hold certain non-senior living assets, such
as apartments, office buildings and bare land. Receiver Michael Grassmueck will oversee