Genesis Healthcare Investors Fight Suit to Cancel Secured Debts

Entities controlled by Genesis Healthcare insiders urged a Texas bankruptcy court to dismiss a lawsuit challenging $96 million in secured loan claims they hold against the nursing home operator, disputing misconduct allegations.

Genesis investors Joel Landau and David Gefner—owners of entities sued by the bankrupt company and a committee of creditors last month—on Thursday told the US Bankruptcy Court for the Northern District of Texas that their contributions over the years have helped the skilled nursing firm, and that current efforts to disallow or subordinate their creditor claims are misguided.

“Net-net Genesis is better off because of the contributions of ...