McDermott Will & Schulte advises Genesis Healthcare on successful Chapter 11 restructuring, including nearly $1 billion sale of approximately 170 nursing homes

Global law firm McDermott Will & Schulte LLP advised Genesis Healthcare, Inc. (Genesis), one of the largest US nursing home operators, throughout its successful chapter 11 restructuring, which culminated in the closing of a sale and the confirmation of Genesis’ Chapter 11 plan on October 14, 2026, by the Honorable Chief Judge Stacey G.C. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division.

On October 14, 2026, following a complex and competitive sale process, the sale to 101 W State Street Holdings LLC, an affiliate of New Generation Health LLC, closed for approximately $1 billion of consideration. On the same date, Chief Judge Jernigan confirmed the Debtors’ Chapter 11 plan, pursuant to which the net sale proceeds, as well as the proceeds from a $150 million settlement reached with certain insiders and secured lenders, will be distributed to a liquidation trust for the benefit of Genesis’ creditors. The Plan was supported by all major case constituents, as well as approximately 98% of voting unsecured creditors.

Chief Judge Jernigan noted that “this case has been about as complicated as a Chapter 11 case can be. 299 Debtor entities, more than 170 actual senior living facilities, plus some ancillary businesses, thousands of employees, thousands of residents, an incredibly complex capital structure, a complex array of debt obligations and holders, many different landlords, many different vendors, hundreds of tort claimants, and regulators in many states, as well as the federal level.” The Court also indicated that McDermott attorneys have “done an amazing job of just sort of bringing our focus” to “so many of the human beings involved, not just the professionals who have steered this through the very complex world of Chapter 11 and the regulatory overlay at that, but the residents, the employees, and the management.”

Each of the Genesis facilities remained open and operational throughout the Chapter 11 cases, and the sale preserves continuity of care for residents and employment for Genesis’ workforce.

The McDermott team was led by Daniel Simon, Gregg Galardi, Emily Keil, and Will Guerrieri. The team obtained valuable assistance from, among others, Jay Greathouse, Kelsey Reinhardt, Rob Markus, Nathan Bull, DC Wolf, Landon Foody, Jared Mezzatesta, Andrew Lyonsberg, Josh Stein, Sarah Kitchell, Zachary Knoop, and Lauren Knight.