HCR ManorCare Inc., one of the largest skilled nursing home chains in the U.S., filed for bankruptcy protection on Sunday as part of a deal in which its landlord, Quality Care Properties Inc., will take control of the company, WSJ Pro Bankruptcy reported. As part of the bankruptcy deal, the company has agreed to pay former Chief Executive Paul Ormond more than $115 million in deferred compensation and severance. The Toledo, Ohio-based nursing home operator, which is owned by private-equity firm Carlyle Group, has been behind on rent to QCP, a publicly traded real-estate investment trust, for nearly a year. After repeated missed payments and after QCP agreed to multiple temporary reductions on rent payments, QCP took legal action against its primary tenant last August, suing to replace the company’s management and appoint a receiver with the power to collect rent. The company has been in talks on a balance-sheet restructuring with the landlord since then.
