Genesis Healthcare, a major U.S. nursing home operator, recently filed for Chapter 11 bankruptcy—citing mounting costs from personal injury and wrongful death claims as a primary factor. Now, families and legal representatives of injury victims are pushing back, accusing the company of using the bankruptcy process to sidestep liability.

What’s Happening?

  • $30 Million Loan & Asset Control
    Genesis has secured a $30 million debtor-in-possession (DIP) loan from lenders closely tied to its ownership, enabling it to continue operations while preparing for a swift sale of assets.

  • Insiders Positioned to Buy Low
    The ownership group—led by private equity firm Pinta Capital via affiliate ReGen Healthcare—is reportedly positioned to buy back the company’s 175 facilities during the bankruptcy process, potentially free from past legal claims.

  • “Rinse and Repeat” Pattern
    Critics say this maneuver follows a pattern: use bankruptcy to shed liabilities, then reacquire the company at a discount—repeating the process whenever lawsuits escalate.

  • Claimants at Risk
    Over 125 families with pending injury or wrongful death settlements totaling an estimated $34 million face being treated as unsecured creditors—placing them low in the priority list for payouts.

Why It MATTERS

For those injured due to allegations of negligence, this strategy may significantly reduce or erase the financial recovery they anticipated. The structure of Chapter 11 can allow companies—and their controlling parties—to shed liabilities while maintaining control, leaving victims without full restitution.

What You Need to Know

If you or a loved one are involved in an injury or wrongful death claim against Genesis Healthcare:

  • File Your Claim Promptly: Secure your spot in the bankruptcy process by submitting documentation on time.

  • Avoid Being a Lower-Priority Creditor: Unsecured claims often get pennies on the dollar—or nothing at all—when assets are limited.

  • Consider Legal Representation: An experienced personal injury attorney can help elevate your claim or object to unfair treatment.

  • Watch for Reorganization Plans: Ensure your claim is represented during hearings and in stakeholder meetings.

The Bigger Picture

This case highlights a troubling trend of private equity–driven strategies to protect investor interests over patient or victim rights. Holding these firms accountable may require carefully coordinated legal strategies, including creditor committee involvement, court objections, and maximizing claim visibility in restructuring plans.

Need Help Navigating a Claim?

If you or a loved one have an unresolved injury or wrongful death claim against a healthcare provider undergoing bankruptcy, Pisanchyn Law Firm can help. With deep experience handling complex cases involving Chapter 11 filings, we can advocate for your rights and maximize your opportunity for recovery.

Contact us today for a free consultation—you deserved to be heard, even when big corporate maneuvers seem designed to silence you.