Attorney Scott Opincar featured in Bloomberg Law's report on nursing home industry's complex financial future

McDonald Hopkins attorney Scott Opincar was recently featured in Bloomberg Law discussing the future of bankruptcy and restructuring in the nursing home industry, using the nearly $1 billion sale of Genesis Healthcare as a case study.

An excerpt of the article is below:

Private equity acquisitions are typically financed with large debt facilities, Opincar said. Major cuts in public assistance come as the senior living bond sector has seen higher default rates than other industries, he said.

Secured debt often exceeds asset values, leaving many skilled nursing facilities unable to support their obligations, he said, pointing to NewGen’s winning bid of about $996 million.

“This purchase price represents less than half of the company’s $2+ billion debt load,” Opincar said in an email. “The current financial distress in the industry will continue to result in out-of-court sales and in-court bankruptcies and receiverships to effectuate assets sales in situations where refinancing is not a viable option.”

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