Sun reverses field: won't sell rehab unit to Beverly
Sun Healthcare Group says it has reconsidered and won't be selling its rehabilitation business to Beverly Enterprises after all. Sun had earlier announced a $34 million deal involving its SunDance Rehabilitation Corp and SunDance Rehabilitation Agency as part of its bankruptcy reorganization proceedings.
Company officials were not able to finalized certain aspects of the transactions that were considered conditions of closing, according to a release from Irvine, CA-based Sun. Beverly, a competitor of Sun's in the long-term care market, has been aggressively trying to grow its Aegis Therapies business.
Sun emerged from Chapter 11 bankruptcy two years ago with plans of trimming some of its less profitable businesses. It has sold more than 100 facilities as part of restructuring. It said the discontinued rehab units' sale to Beverly would not hurt its restructuring plans because it expected to get "other financial resources."