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| SRZ > SEC Filings for SRZ > Form 8-K on 1-Jun-2012 | All Recent SEC Filings |
1-Jun-2012
Material Impairments, Other Events, Financial Statements and Exhibits
On May 29, 2012, Sunrise Senior Living Services, Inc. ("SSLSI") and Sunrise Continuing Care, LLC ("SCC"), both of which are subsidiaries of Sunrise Senior Living, Inc. (the "Company"), entered into an Operations Transfer Agreement (the "Agreement") with SPTMRT Properties Trust (the "Landlord"), SNH SE Tenant TRS, Inc. and FVE Managers, Inc., an affiliate of Five Star Quality Care, Inc. The Agreement provides for, among other things, the early termination of leases on ten senior living facilities leased from Landlord by SSLSI or SCC that were previously scheduled to terminate effective December 31, 2013. In connection with the early termination of the leases pursuant to the Agreement, Sunrise will take an impairment charge in the second quarter of 2012 of approximately $16 million to the book value of leasehold improvements and furniture, fixtures and equipment at the 10 communities.
As described in the Company's Form 10-Q for the quarter ended March 31, 2012, the Company and other parties affiliated with the Company are named defendants in two legal actions by Five Star Quality Care, Inc. ("Five Star") and its subsidiaries. On May 29, 2012, the parties signed a Settlement Agreement and Release pursuant to which the Company has made a cash payment of $4.0 million to Five Star to settle and dismiss the lawsuits.
A copy of the Company's press release regarding the Agreement and the settlement with Five Star is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Shell company transactions.
Not applicable.
(d) Exhibits.
Exhibit 99.1 Press Release issued by Sunrise Senior Living, Inc. on May 30, 2012.
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