Sunrise granted more time to pay off bank loans
Sunrise Senior Living Inc. has received a one-year extension on an expiring credit line. That gives the company until December of 2010 to pay off $62.9 million in bank loans.
The temporary reprieve came a little more than a week after Sunrise sold 21 of its facilities to Brookdale Senior Living. Sunrise has agreed to hand over $30 million from the proceeds of that sale to its lenders, whic include Bank of America, Wells Fargo and Wachovia. If the sale falls through, the banks have agreed to accept a lien on the properties, The Washington Post reported.
Without the loan extension, it is likely Sunrise would have gone into bankruptcy, Sunrise CEO Mark Ordan said. Sunrise has been implementing some restructuring efforts in the wake of a $439 million loss in 2008. The senior living company currently stands in default on roughly $360 million in other debts.