Sunrise Senior Living Settles Claims With Lenders

MCLEAN, VA. (AP) — Sunrise Senior Living Inc. said Tuesday it settled claims with several lenders and will sell or give up control of some senior-living facilities as part of its agreements.

Sunrise said in March it was working with lenders to avoid filing for bankruptcy protection. Shares of the company rose after it said that the deals settle about 77.5 percent of the value of all claims against it.

Sunrise said the two lenders, Capmark Finance and Natixis, had claims valued at about $121.6 million against the company. If the lenders accept all the terms of a restructuring agreement, Sunrise said it will mortgage and sell some of its U.S. properties, and give the proceeds to the lenders. The lenders will also receive shares in Sunrise.

Sunrise guarantees that the lenders will received at least $58.3 million in proceeds within 30 months of agreeing to the restructuring — which is 80 percent of the value of the properties it will mortgage and sell. If the sales do not raise at least $58.3 million, Sunrise will cover the shortfall.

The company also said it has been released from all commitments related to The Fountains, a company Sunrise bought in 2005 in a joint venture with Arcapita, a venture-capital firm. Sunrise will transfer its 20-percent stake in the joint venture to Arcapita, and find a new manager to run 16 Fountains properties.