😷New Chapter 11 Bankruptcy - Pottsville Operations LLC😷

PA-based skilled nursing facility operator files for bankruptcy to pursue a sale.

On October 15, 2024, PA-based Pottsville Operations LLC and ten affiliates (collectively, the “debtors”) filed chapter 11 bankruptcy cases in the Western District of Pennsylvania (Judge Deller). The debtors, operators of six skilled nursing facilities in Pennsylvania, seek liquidity to stave off an “immediate shutdown” while they prep a sale to a new operating group, according to the first-day declaration of CRO Neil Luria of SOLIC Capital Advisors LLC (“SOLIC”). 

Man, these SNF bankruptcies are piling up. So there’s not much original here. There’s the usual parade of horribles: Covid-19 and its attendant labor shortages, wage inflation, and “greater reliance on overtime pay and staffing agency needs” — all of which sent the debtors’ income statement to hospice. You know what else wasn’t helpful? The fact that Medicaid reimbursement rates “were not enough to keep up with the increased costs.”

Sh*t got bad for the debtors.

They have not paid rent in over a year. Landlords be like: