Genesis Healthcare Taps New Winner for Nursing Home Assets (1)

Genesis Healthcare Inc. announced a new bidder to purchase its sprawling nursing-home empire with an offer valued at about $1 billion.

An entity called 101 West State Street LLC won the auction for the Genesis assets after five rounds of bidding, according to a notice filed Wednesday in the US Bankruptcy Court for the Northern District of Texas.

The sale value of the winning bid is $1.015 billion, or $996 million after striking break-up and termination fees and other expenses. The bid includes $343 million in cash, a $100 million promissory note, and the assumption of $572 million in liabilities, according to the notice.

The company beat out an offer from Genie 3 Partners LLC, which was the stalking horse bidder for the assets and is now the designated back-up bidder.

No additional details about 101 West State Street were immediately available. A sale hearing is scheduled for Jan. 20.

Genie 3 is a joint partnership between a business associated with nursing home executive Jacob Sod, his firm Milrose Capital LLC, and health-care investment and management firm Integro Asset Management LLC, which does business as Integro Healthcare Services, according to court papers. Integro is headed by Rowan Farber.

Genesis, which runs 175 facilities in the US, filed Chapter 11 in July. It blamed its troubles on rising labor costs and other operating expenses following the Covid-19 pandemic.

Judge Stacey Jernigan last week approved stalking horse bid protections for Genie 3, including a $10 million break-up fee and up to $1 million for expenses. Jernigan approved the break-up fee despite previous doubts, noting that Genie 3 had warned that without the protections, it wouldn’t participate in the renewed sale process.

The announcement of 101 West State Street as the winning bidder comes about a month after Jernigan stopped a prior proposal to sell the Genesis business to insider affiliates after it came under fire from creditors challenging the proposed buyer’s secured debt.

Democratic lawmakers also called on the court to appoint an independent examiner to investigate the proposed sale to an insider. The Justice Department’s bankruptcy monitor, the US Trustee’s office, has also moved to appoint an independent Chapter 11 trustee in the bankruptcy.

Genesis is represented by McDermott Will & Schulte LLP. The unsecured claimholders’ committee is represented by Stinson LLP and Proskauer Rose LLP. Genie 3 is represented by Baker & Hostetler LLP.

The case is Genesis Healthcare, Inc., Bankr. N.D. Tex., No. 25-80185, notice 1/14/26.