Haven Eldercare to be run by new Omega company following sale agreement termination

By Caroline Salls

Pittsburgh, June 27 - Omega Healthcare Investors, Inc. said it has formed a new company with an experienced nursing home management team to operate the 15 Haven Eldercare, LLC facilities located on Omega property following the termination of a third party's agreement to acquire substantially all of Haven Eldercare's assets, according to an Omega news release.

"Omega plans to provide both working capital and capital expenditure credit facilities to the new provider so that the caregivers in these facilities can continue doing what they do best and that is providing quality care for the residents of these facilities," Omega chief executive officer C. Taylor Pickett said in the release.

"Since the Haven situation has been rapidly evolving, we have not completed our assessment of the financial impact of these actions.

"We expect to be in a position to provide an overview of the financial impact in connection with our second-quarter earnings announcement."

The transition is subject to approval of the U.S. Bankruptcy Court for the District of Connecticut.

Omega said it expects the court to approve the new management team taking control based on Omega's rights as a lessor and a secured creditor.

According to the release, the management team will be led by Timothy Coburn, who has been in health care facility management for 30 years as a senior member of several national health care companies.

Over the past six years, Coburn has been a manager of distressed health care properties on behalf of the U.S. Bankruptcy Courts and the State of Connecticut Superior Courts, as well as private investors.

He was appointed patient care officer by the bankruptcy court in November 2007 and is a licensed Nursing Home Administrator in Connecticut and Massachusetts.

Haven, a Middletown, Conn.-based nursing home operator, filed for bankruptcy on Nov. 20, 2007. Its Chapter 11 case number is 07-32722.

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