Quality Care Properties Provides Update on HCR ManorCare

BETHESDA, Md., July 21, 2017 /PRNewswire/ -- As previously announced by Quality Care Properties, Inc. (NYSE: QCP) ("QCP" or the "Company"), on July 7, 2017, QCP delivered to its principal tenant, HCR III Healthcare, LLC, an indirect wholly-owned subsidiary of HCR ManorCare, Inc. (together, "HCR ManorCare"), a notice of default relating to nonpayment of rent due and other matters under the Master Lease and Security Agreement, dated as of April 7, 2011, as amended and supplemented (the "Master Lease").  QCP today announced that it has not received payment of current and past due rent, totaling approximately $79.6 million, and that therefore an Event of Default exists under the Master Lease.  The Event of Default requires the immediate payment of an additional approximately $265 million of Deferred Rent Obligations and permits the QCP lessors to terminate the Master Lease, appoint receivers or exercise other remedies with respect to any and all leased properties.  QCP continues to be in discussions with HCR ManorCare about the Event of Default and related matters.