KENNETT SQUARE, PA — Genesis Healthcare Inc. has completed the sale of substantially all its operating assets to 101 W. State Street LLC, marking the conclusion of a major phase of the Kennett Square-based nursing home operator’s Chapter 11 restructuring and transferring its operations to new ownership.
The company confirmed that its Chapter 11 reorganization plan became effective following the October 14, 2026, closing of the transaction with 101 W. State Street LLC, also known as West State Street.
The effective date marks a significant milestone in the bankruptcy proceedings, allowing the restructuring plan to take effect following the transfer of the company’s operating assets.
Genesis did not disclose the transaction’s financial terms, the number of facilities included in the sale or the treatment of creditor claims in its announcement.
The company indicated that its financial performance and quality-of-care metrics improved during the bankruptcy proceedings, although it did not provide figures detailing those changes.
The transaction transfers responsibility for the acquired operations to West State Street following a restructuring process that Genesis characterized as lengthy and complex.
David Harrington, the company’s outgoing chairman, credited employees with maintaining operations and continuing efforts to improve performance throughout the proceedings.
“Throughout this complex bankruptcy case, they stayed focused on the people in their care, kept operations strong, and continued the operational turnaround that remained Genesis’ focus prior to, and during, the bankruptcy process,” Harrington stated.
The company identified McDermott Will & Schulte as its legal counsel during the restructuring.
Ankura Consulting provided financial restructuring and chief restructuring officer services, with Russell A. Perry and Louis E. Robichaux IV serving as co-chief restructuring officers.
Jefferies acted as the company’s exclusive investment banker.
The completion of the asset sale and effectiveness of the Chapter 11 plan conclude a central stage of Genesis Healthcare’s restructuring, with West State Street assuming ownership of the acquired operating assets.
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