**Genesis HealthCare Files for Chapter 11 Bankruptcy Protection**
Genesis HealthCare, Inc., a leading provider of skilled nursing and senior living services, has filed for Chapter 11 bankruptcy protection. The Kennett Square, Pennsylvania-based company, along with its subsidiaries, filed voluntary petitions in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division.
The move comes as Genesis seeks to streamline operations and address legacy liabilities stemming from previously divested assets. Despite the filing, the company stated it will continue operating its facilities without disruption.
Currently, Genesis HealthCare operates more than 200 facilities across 19 states. According to reports, the company’s liabilities fall between $1 billion and $10 billion. The Chapter 11 filing includes a plan under which an affiliate would potentially acquire Genesis’ operations.
Executive Chairman David Harrington emphasized the progress the company has made in recent years, highlighting a strategic transition from centralized to market-based operations.
“We have much to be proud of for the tremendous progress we have made as an organization over the last several years as we have implemented a forward-looking, enterprise-wide shift,” said Harrington. “Our ongoing work has confirmed that, to maintain our momentum, we must address our legacy debt structure.”
The bankruptcy filing is intended to provide the company with the necessary tools to restructure its financial obligations while maintaining continuity of care across all facilities.
