Court Approves $1.3B Bankrupt Sunwest Sale

PORTLAND, OR-A US District Court here has approved the $1.3 billion sale of 149 senior housing facilities by bankrupt seniors housing company Sunwest Management to a joint venture of Blackstone Real Estate Advisors VI LP, Emeritus Senior Living and Columbia Pacific Advisors. Sunwest, since filing its Chapter 11 bankruptcy, is now reorganizing as Stayton SW Assisted Living, which will be the selling entity in the deal.

The Blackstone / Emeritus Joint Venture will become the stalking horse bidder in a bankruptcy auction that is scheduled for May 17. The pending sale was approved by US District Court Judge Michael Hogan.

The transaction will include a combination of cash, securities, and assumption of debt. The Blackstone / Emeritus Joint Venture will purchase most of the assets of the consolidated Sunwest enterprise. Existing investors and other claimants in the bankruptcy estate will be permitted to exchange their claims for either cash or up to 49% of the units in the venture.