MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors, Inc., (NYSE:NHI), National HealthCare
Corporation (NYSE MKT: NHC) (NYSE MKT: NHC.PRA), the court-appointed
Receiver for two Tennessee nonprofits, SeniorTrust of Florida, Inc.,
("SeniorTrust") and ElderTrust of Florida, Inc., ("ElderTrust), and the
Tennessee Attorney General announced today that they have agreed to
resolve a long-standing dispute that has been the subject of litigation.
The resolution of the litigation, together with the Receiver's sale of
14 nursing homes and liquidation of the nonprofits' assets, will
ultimately result in approximately $40M for charitable purposes in
Tennessee.
The Tennessee Attorney General had previously asked the Davidson County
Chancery Court to place both of these nonprofits in receivership. The
Receiver subsequently filed suit against National Health Investors, Inc.
("NHI") and National HealthCare Corporation ("NHC").
NHI helped to establish SeniorTrust and ElderTrust, two Tennessee
501(c)(3) nonprofit corporations, in 2000. Between 2001 and 2004, NHI
sold a group of skilled nursing facilities in Missouri and Kansas to
SeniorTrust and a group of skilled nursing facilities in Massachusetts
and New Hampshire to ElderTrust. The Receiver's primary dispute with NHI
concerned the financial terms on which NHI had sold and financed the
purchase of the facilities to the nonprofit.
In 2007, NHC acquired the lease of a long-term care facility in
Chattanooga, Tennessee, known as Standifer Place from SeniorTrust. The
Receiver's primary dispute with NHC concerned the financial terms on
which NHC acquired the lease.
The Receiver for SeniorTrust and ElderTrust claimed that the financial
terms of the various transactions with NHI and NHC were unfair to the
nonprofits, a claim NHI and NHC disputed.
As part of the negotiated resolution, NHI will discount amounts it
claims remain due from SeniorTrust and ElderTrust. SeniorTrust and
ElderTrust will pay those discounted amounts, and NHI will acquire
ElderTrust's skilled nursing facilities in Massachusetts and New
Hampshire.
NHC has managed the skilled nursing facilities owned by SeniorTrust and
ElderTrust since the facilities were acquired from NHI. As part of the
negotiated resolution, NHC paid additional amounts to resolve the
Receiver's claims. As a result of the settlement, NHC also has agreed to
lease from NHI the seven skilled nursing facilities in Massachusetts and
New Hampshire which were formerly owned by ElderTrust.
The Office of the Tennessee Attorney General, which oversees Tennessee
nonprofits, expressed satisfaction with the settlement of these
disputes, which is subject to approval by the court in which the
receiverships are pending. “We believe this settlement is in the best
interest of the public and upholds the appropriate use of Tennessee
charities,” said Attorney General Bob Cooper. “The Court will ultimately
determine how these funds can be used for charitable purposes, and the
Office of the Attorney General will seek and welcome public input in
that process.”
National Health Investors, Inc. is a healthcare real estate investment
trust specializing in financing healthcare real estate by purchase and
leaseback transactions, RIDEA transactions and by mortgage loans. NHI's
investments include assisted living, senior living campuses, independent
living, skilled nursing facilities, medical office buildings, and
hospitals. Find additional information about NHI at www.nhireit.com.
Statements in this press release that are not historical facts are
forward-looking statements. NHI cautions investors that any
forward-looking statements may involve risks and uncertainties and are
not guarantees of future performance. All forward-looking statements
represent NHI's judgment as of the date of this release. Investors are
urged to carefully review and consider the various disclosures made by
NHI in its periodic reports filed with the Securities and Exchange
Commission, including the risk factors and other information disclosed
in NHI's Annual Report on Form 10-K for the most recently ended fiscal
year. Copies of these filings are available at no cost on the SEC's
website at http://www.sec.gov or
on NHI's website at http://www.nhireit.com.
Harwell Howard Hyne Gabbert & Manner, P.C.
Alex Fardon,
615-251-1062
Source: National Health Investors, Inc.