Democratic Lawmakers Call For Probe of Genesis Bankruptcy Sale

Democratic lawmakers called on a Dallas bankruptcy court to appoint an independent examiner to investigate nursing home giant Genesis Healthcare Inc.'s selection of an insider to buy its assets.

The corporate structures of all entities that made bids and the potential impact an existing investor’s winning bid may have on unsecured creditors should be investigated, Sen. Elizabeth Warren (D-Mass.), Sen. Richard Blumenthal (D-Conn.), and Rep. Maggie Goodlander (D-N.H.) said in a brief expected to be filed Monday in the US Bankruptcy Court for the Northern District of Texas.

“The conduct of bankruptcy proceedings not only should be right but must ...