Emeritus is the Winning Bidder in the Auction to Acquire Alterra Healthcare
Upendra Mishra
SEATTLE & MILWAUKEE--Emeritus Assisted Living and Alterra Healthcare Corporation jointly announced that a majority owned subsidiary of Emeritus, with financing provided by an affiliate of Fortress Investment Group LLC, was the winning bidder at an auction conducted in the Alterra bankruptcy proceeding, pursuant to which Alterra was offering for sale 100% of the equity of the restructured Alterra upon its emergence from its Chapter 11 bankruptcy proceeding.
The proposed acquisition is expected to be consummated upon confirmation of Alterra's Chapter 11 plan of reorganization, and is contingent upon satisfaction of various conditions, including receipt of Bankruptcy Court approval and consents from certain of Alterra's secured lenders and lessors.
Alterra, a national assisted living company headquartered in Milwaukee, filed a voluntary Chapter 11 bankruptcy petition on January 22, 2003. On April 10, 2003, the Bankruptcy Court approved bidding procedures establishing a process for Alterra to seek and select a transaction to address its capital and liquidity needs upon completion of its bankruptcy reorganization by selling its capital stock or assets. A hearing in the Bankruptcy Court to approve the Emeritus bid as the highest and best bid is scheduled for July 23, 2003.
Upon emerging from its Chapter 11 reorganization, Alterra is expected to be comprised of approximately 300 communities with bed capacity of 13,000. Upon completing the acquisition, Emeritus will operate approximately 475 communities comprising 26,500 units in 38 states. Combined annual operated revenue is expected to be approximately $800 million.
