Here we go again.....Taylor Pickett.....Pickett also said that Omega is part of Haven's debtor-in-possession financing,

Second Look: Omega Healthcare Investors
Omega Healthcare Says UBS Note on Haven's Bankruptcy Has 'Generated Some Confusion'
April 03, 2008: 02:19 PM EST


NEW YORK (Associated Press) - Omega Healthcare Investors Inc. said Thursday that a UBS Investment Research note on bankruptcy concerns at a key customer has "generated some confusion" and contains statements that were either inaccurate or taken out of context.

UBS analyst Omotayo Okusanya II said Wednesday that debtors-in-possession of Haven Eldercare _ whose facilities make up 9 percent of Omega's portfolio _ have "become more reluctant to fund Haven through its restructuring" and that Haven may not renew a master lease with Omega in June. Haven declared bankruptcy in November.

Okusanya also said in his note that Haven is proposing potential bidders for its properties start with an opening offer of $8 million to $15 million, below Omega's current $61.8 million mortgage on Haven properties.

Omega is a real estate investment trust that provides financing to the long-term care industry. It has two financial portfolios with Haven, which include eight facilities that it leases to Haven and seven Haven locations on which it hold mortgages. The two support each other and are cross-collateralized, Taylor Hickett, Omega's chief executive officer, said in a phone interview.

(P)Hickett said it is unclear how Haven could possibly separate the mortgages from the lease and then reject the lease.

"Although no one can predict whether Haven will ultimately assume or reject Omega's master lease, throughout these proceedings Haven has consistently indicated that the Omega master lease is a valuable asset to the estate that will be assumed as part of the sale process," he said in a release.

The $8 million to $15 million is for unsecured creditors and that amount will allow them to "recover 100 percent of their indebtedness," he said. In bankruptcy proceedings, secured debt is paid before unsecured debt.

Pickett also said that Omega is part of Haven's debtor-in-possession financing, and that he is "not aware of any instance where there has been any reluctance to fund in accordance with the terms and conditions of the loan."

Omega shares fell 21 cents to $16.51 in afternoon trading Thursday.