Genesis Health Creditors Challenge Financing, Bid Procedures

Genesis Healthcare Inc. junior creditors opposed $30 million in proposed bankruptcy financing and bidding procedures for the nursing home operator’s assets, saying they’re designed to benefit insiders to the detriment of all other stakeholders.

Entities controlled by health-care entrepreneur Joel Landau are providing financing premised on milestones that create an expedited sale timeline and will discourage competing bids, a committee of unsecured claimholders said in a Monday filing in the US Bankruptcy Court for the Northern District of Texas.

The financing milestones create an “artificially compressed sales process” that would allow insiders to absorb the estate’s value and shed lawsuits ...