Court Approves Sunwest Purchase and Sale
Agreement
$1.3 Billion Transaction Involves 149 Sunwest Senior Living Properties
Existing Claimants Retain Up To 49% Interest in New Blackstone / Emeritus Joint Venture
March 26, 2010 10:03 AM Eastern Daylight Time
PORTLAND, Ore.--(EON: Enhanced Online News)--Stayton SW Assisted Living, an Oregon-based senior living
provider formerly known as Sunwest Management and currently reorganizing under Chapter 11 (“Sunwest”),
announced that US District Court Judge Michael Hogan has approved an agreement to sell 149 senior housing
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
become the stalking horse bidder in a bankruptcy auction to be held on or about May 17, 2010.
The transaction is valued at $1.3 billion and includes a combination of cash, securities, and assumption of debt. The
Blackstone / Emeritus Joint Venture will purchase most of the assets of the consolidated Sunwest enterprise. Existing
investors and other claimants in the bankruptcy estate will be permitted to exchange their claims for either cash or up
to 49% of the units in the venture.
“This is a very promising transaction for Sunwest’s investors and other creditors of the bankruptcy estate, for which
we all owe thanks to Judge Hogan and individuals he has appointed,” said Chief Restructuring Officer Clyde
Hamstreet. “He employed an effective mediation strategy, using [retired Lane County Circuit Court Judge] Lyle
Velure as mediator, to resolve most of the financial and legal complexities and disputes. This allowed hundreds of
Sunwest entities that were on the verge of liquidation to be consolidated into a single viable business. That act alone
created significant value for the estate to the benefit of investors, lenders, and other creditors.”
Investor groups also endorsed the Court’s handling of the case. “If