Legacy Hilo nursing facility to be sold
Legacy Hilo Rehabilitation and Nursing Center filed Chapter 11 reorganization bankruptcy Sunday and has agreed to be sold to its managing company.
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Legacy Hilo Rehabilitation and Nursing Center filed Chapter 11 reorganization bankruptcy
Sunday and has agreed to be
sold to its managing company.
The 100-bed skilled nursing
facility is set to be purchased by Hilo SNF, a subsidiary of Ohana Pacific Management Co., for
$17.5 million unless there are higher offers from qualified
bidders. The sale of the facility, which has 74 patients, is scheduled to close by Dec. 31.
The bankruptcy filing will not affect nursing home operations
or employees, said Ben Meeker, president of Legacy Hilo and Hilo SNF, in a news release.
The nursing home also has
sufficient cash to “ensure
the payment of all essential
operating obligations, including payment of employees and vendors.”
In February, Legacy Hilo received an unsolicited offer from Avalon Health Care Group and reached an agreement subject
to Avalon conducting its due
diligence. But Avalon terminated negotiations in late June.
Shortly thereafter Legacy
Hilo began negotiations to sell the center to Hilo SNF.
Ohana Pacific Management owns and operates five skilled nursing facilities, two adult day health centers, a home health agency and a management company with 509 beds on Oahu and Kauai.
Legacy Hilo, measuring
48,597 square feet, was built in 2015 on roughly 17.6 acres. The
facility has 120 employees and generated revenue of about
$10 million in 2018 and $6.8 million through September. Total debts are estimated at between $17 million and $18 million.