Tag Archives: investors

Charities to Get $40M in Settlement of Nursing Home Litigation

News release from Tennessee Attorney General’s office:
MURFREESBORO, Tenn. — National Health Investors, Inc., (NYSE:NHI), National HealthCare Corporation (NYSE MKT: NHC, 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 nonprofits.
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.

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Moody’s Rates TN as Stable

NASHVILLE, Tenn. (AP) — Moody’s Investors Service has revised Tennessee’s credit outlook from negative to stable.
Moody’s in October retained its top debt rating for Tennessee but gave the state the negative outlook following an earlier decision to do the same with the federal government’s debt.
The ratings agency said in a statement Wednesday that the outlooks of Tennessee and South Carolina were improved because they have a relatively low financial and economic exposure to reductions in federal spending.
Moody’s said it kept the outlooks for Maryland, New Mexico and Virginia at negative.
Tennessee also has a top rating from Fitch Ratings, while Standard and Poor’s has the state at one notch below its best grade.