Pennsylvania-based Genesis Healthcare Inc. and 298 of its affiliates and subsidiaries filed for Chapter 11 bankruptcy organization on Wednesday in the Northern District of Texas.
A skilled rehabilitation and assisted living facility operator with homes in 25 states, Genesis Healthcare has hired McDermott Will & Emery as its lead legal advisor, Ankura as its lead financial advisor and Jefferies as its investment banker.
Genesis lists between 10,000 and 25,000 creditors with between $1 billion and $10 billion in liabilities. The creditors include the IRS ($103 million), Houston-based Sysco ($6.8 million) and five Houston residents — Linda Medlock ($2.5 million), Alma Brown ($2 million), Elroy Medina ($1.5 million), Yvonne Ramirez-Tellez ($1.5 million) and Faustina Tinkham ($1.5 million) — who settled nursing home abuse lawsuits with the company.
In court filings, Genesis states that it has secured a $30 million commitment of debtor-in-possession financing from its existing secured lenders.
The McDermott lawyers working on the Genesis bankruptcy include Dallas attorneys Marcus Helt, Jack Haake and Grayson Williams.
Other law firms involved representing creditors or third parties include Gibson, Dunn & Crutcher, Blank Rome, McGuireWoods and Vartabedian, Hester & Haynes.
The case has been assigned to Judge Stacey Jernigan in Dallas.
The case is In re Genesis Healthcare, NDTX, No. 25-80185.