Genesis Healthcare Inc. won a fight against the federal government’s call for a trustee to take over the nursing home operator’s bankruptcy case over conflict concerns, with a judge finding an appointment would be “devastating” to the estate.
The Justice Department’s bankruptcy monitor, the US Trustee, failed to meet its burden to prove that a Chapter 11 trustee should be appointed to run the Genesis bankruptcy, Judge Stacey Jernigan ruled at a hearing Wednesday in the US Bankruptcy Court for the Northern District of Texas.
Jernigan cited “extensive safeguards” put in place since Genesis filed for bankruptcy last year. She ...