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Sunrise Senior Living may have to file for bankruptcy

Tough news arrived Monday for the McLean, VA based senior living services provider, Sunrise Senior Living.
 
 
 
Tough news arrived Monday for the McLean, VA based senior living services provider, Sunrise Senior Living. The company, which operates facilities in the US, Canada and Europe, said Monday it is working with lenders so it can avoid filing for bankruptcy protection. The news came as Sunrise announced its fourth quarter and full-year earnings for 2008.

Not shockingly, Sunrise Senior Living posted big losses in the fourth quarter and for the full-year overall. The net loss for the fourth quarter was $305.6 million or $6.07 a share. For the year it was down $124 million or $2.48 a share. At the end of the year the company's debt totaled $636.1 million. The company cannot borrow any more money and it has significant debt into 2009 and 2010. As of Monday, shares of Sunrise were down 26 cents or 40 percent.

The company operates 435 living communities in the United States with about 54,000 residents living in its communities. Because of the bad debt the company has discontinued 26 projects under construction. The company said it is hoping to maintain construction of these projects.

"Sunrise believes, and has stated to its lenders, that the best course of action for these construction lenders is to continue to fund these projects through completion. There can be no assurance, however, that these lenders will continue to fund the construction and development of these projects," it said in a press release.

Additionally, the company cut off funding for its Greystone and Trinity subsidiaries. As a result of the lack of funding, Trinity went under and ceased to exist as of December 31, 2008.


(Information sourced from Reuters and Sunrise Senior Living Press Release)

For more information please visit: http://phx.corporate-ir.net/phoenix.zhtml?c=115860&p=irol-newsArticle&ID=1261336&highlight=
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