Saturday, May 5, 2018

Carlyle Closes ManorCare Bankruptcy Chapter: Morocco to Read?

ToledoBlade reported:

HCR ManorCare has filed another amended bankruptcy plan to reflect last week’s decision by Toledo firms ProMedica and Welltower Inc. to purchase the skilled nursing home operator from real estate investment trust Quality Care Properties Inc.

On March 4, ManorCare had filed a 41-page prepackaged bankruptcy plan that had been agreed upon by all the parties involved at that time — ManorCare; its landlord, QCP, and chief investor private-equity firm The Carlyle Group.
The filings showed ManorCare with $7.1 billion in debts and $4.3 million in assets.  Carlyle bought ManorCare for $6.3 billion in 2007 then sold the nursing home facilities for $6.1 billion to HCP in 2011.  HCP later spun the toxic assets off to QCP.

On August 6, 2017 the  International Swaps and Derivative Association declared a "failure to pay credit event occurred in respect of Manor Care Inc."  That happened as a direct result of Carlyle's ownership

At the time of the bankruptcy ManorCare owed QCP $446 million in rent.  That's more than Carlyle lost when Moroccan oil refiner SAMIR went bankrupt.  The bankruptcy burned Carlyle's $400 million in oil held at the refinery.  Carlyle wants the Moroccan government to make it whole.

Moroccan lawyers should mine the ManorCare train wreck for bankruptcy statements it can hold up as a mirror to The Carlyle Group.  They can also search court testimony and records in Guernsey, where Carlyle successfully defended its $16.6 billion implosion of Carlyle Capital Corporation.

Below is a partial list of Carlyle bankruptcies:

When Carlyle fails it's not their fault.  Morocco would be wise to dig deep into Carlyle's bankrupt affiliates, especially oil refiner Philadelphia Energy Solutions, which declared bankruptcy in January 2018.

The material could be explosive.