Adviser: Partnerships between Borrowers and Lenders Now Critical
In these unprecedented times, healthcare lenders and their borrowers and operators in the skilled nursing facility space must work hand-in-hand to ensure long-term financial stability, Kenneth J. Ottaviano, a partner and finance lawyer at Blank Rome LLP, told McKnight’s Friday.
Ottaviano noted that although lenders cannot control whether an operator is being forced by federal or state officials to accept people with COVID-19, or whether there are current cases of COVID-19 in the facility, they can control the flow of funds to their borrowers and help ensure that operators have enough liquidity to manage the significant healthcare issues that they are dealing with on an hourly basis.
“It is generally understood that in the short term, both healthcare lenders and borrowers/operators need to put resident care first and deal with the debt load and loan restructuring down the road,” Ottaviano said.
"Adviser: Partnerships between Borrowers and Lenders Now Critical" by Amy Novotney was published in McKnight's Senior Living on April 20, 2020.