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Quotes & Info
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| SRZ > SEC Filings for SRZ > Form 8-K on 8-May-2009 | All Recent SEC Filings |
8-May-2009
Other Events
In response to a question raised during the earnings call for the first quarter of 2009 of Sunrise Senior Living, Inc. (the "Company") held on May 8, 2009, relating to the Company's Fox Hill assisted living and condominium project ("Fox Hill"), the Company is hereby providing additional information concerning the status of Fox Hill and clarifying one aspect of an answer that was given during the earnings call. Fox Hill is a new Sunrise community located in Bethesda, Maryland that includes independent living condominiums as well as assisted living amenities.
1. The Fox Hill loan agreement and budget provide for the lender to fund construction costs and operating and interest shortfalls during the lease up and condominium sale period. If the lender ceases to fund under the loan agreement, the Company could incur additional obligations in connection with Fox Hill;
2. The Company provided a project completion guarantee to the lender. Construction of Fox Hill is substantially complete; however, unpaid invoices of approximately $3 million remain. The Company has paid approximately $51.1 million in cost overruns under the project completion guarantee;
3. The Company provided an operating deficit guarantee to the lender on the assisted living amenities portion of Fox Hill to fund operating shortfalls and interest payments to the extent they exceed the amounts in the Fox Hill budget; and
4. The Company provided an operating deficit guarantee to the condominium venture to fund cash shortfalls defined as interest on the loan, real estate taxes, condominium assessments and any other expenses in excess of reserves established to pay such expenses in the Fox Hill budget.
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