Securities and Exchange Commission v. Sunwest Management, Inc. et al.
USDC Case No. 09-CV-06056
Michael A. Grassmueck is the court-appointed Receiver of Sunwest Management. Updates and general case documents related to this case are available below.
The court has declared Sunwest a unitary enterprise and as such has rolled additional entities into the Stayton SW Assisted Living, LLC Chapter 11 Bankruptcy, Case No. 6:09-cv-6082. Related information is available at the following page:
Information related to the approved Distribution Plan, including the claims process, is available at the following webpage:
December 19, 2011 UPDATE:
The link below contains a December 15, 2011 letter from Judge Michael R. Hogan concerning the status of the second distribution and purpose of the review process currently underway. The second distribution will be up to 20%, and the likely distribution date is late February 2012. Thank you for your ongoing patience.
 Letter from Judge Michael R. Hogan re: Second Sunwest Distribution dated 12-15-2011
August 23, 2011 UPDATE:
The Receiver has filed Settlement Motions for Certain Settling Brokers & Dealers, Grove Mueller & Swank, P.C., Certain Settling Employees and Garrett Hemann Robertson, P.C. and the Oregon State Bar Professional Liability Fund. The Motions, and related exhibits, are available through the links below.
Certain Settling Brokers and Dealers
Receiver Michael A. Grassmueck's Motion for Approval of Settlement with Certain Settling Brokers and Dealers and for Entry of Claims Bar Order
Memorandum of Points & Authorities in Support of Receiver Michael A. Grassmueck's Motion for Approval of Settlement with Certain Settling Brokers and Dealers and for Entry of Claims Bar Order
Declaration of Receiver Michael A. Grassmueck in Support of Motion for Approval of Settlement with Certain Settling Brokers and Dealers and for Entry of Claims Bar Order
Proposed Order (1) Approving Settlement with Settling Brokers and (2) Entering Final Claims Bar Order and Injunction
Notice of (1) Motion for Approval of Settlements with Certain Brokers and Dealers, (2) Proposed Final Claim Bar Order, and (3) Hearing Date
Grove, Mueller & Swank, P.C.
Receiver Michael A. Grassmueck's Motion for Approval of Settlement with Grove, Mueller & Swank, P.C. and for Entry of Claims Bar Order
Memorandum of Points & Authorities in Support of Receiver Michael A. Grassmueck's Motion for Approval of Settlement with Grove, Mueller & Swank, P.C. and for Entry of Claims Bar Order
Declaration of Receiver Michael A. Grassmueck in Support of Motion for Approval of Settlement with Grove, Mueller & Swank, P.C. and for Entry of Claims Bar Order
Proposed Order (1) Approving Settlement with Grove, Mueller & Swank, P.C. and (2) Entering Final Claims Bar Order and Injunction
Notice of (1) Motion for Approval of Settlements with Grove, Mueller & Swank, P.C., (2) Proposed Final Claim Bar Order, and (3) Hearing Date
Certain Settling Employees
Receiver Michael A. Grassmueck's Motion for Approval of Settlement with Certain Settling Employees and for Entry of Claims Bar Order
Memorandum of Points & Authorities in Support of Receiver Michael A. Grassmueck's Motion for Approval of Settlement with Certain Settling Employees and for Entry of Claims Bar Order
Declaration of Receiver Michael A. Grassmueck in Support of Motion for Approval of Settlement with Certain Settling Employees and for Entry of Claims Bar Order
Proposed Order (1) Approving Settlement with Certain Settling Employees and (2) Entering Final Claims Bar Order and Injunction
Notice of (1) Motion for Approval of Settlements with Certain Settling Employees, (2) Proposed Final Claim Bar Order, and (3) Hearing Date
Garrett Hemann Robertson, P.C. and the Oregon State Bar Professional Liability Fund
Receiver Michael A. Grassmueck's Motion for Approval of Settlement with Garrett Hemann Robertson, P.C. and the Oregon State Bar Professional Liability Fund and for Entry of Claims Bar Order
Memorandum of Points & Authorities in Support of Receiver Michael A. Grassmueck's Motion for Approval of Settlement with Garrett Hemann Robertson, P.C. and the Oregon State Bar Professional Liability Fund and for Entry of Claims Bar Order
Declaration of Receiver Michael A. Grassmueck in Support of Motion for Approval of Settlement with Garrett Hemann Robertson, P.C. and the Oregon State Bar Professional Liability Fund and for Entry of Claims Bar Order
Proposed Order (1) Approving Settlement with Garrett Hemann Robertson, P.C. and the Oregon State Bar Professional Liability Fund and (2) Entering Final Claims Bar Order and Injunction
Notice of (1) Motion for Approval of Settlements with Garrett Hemann Robertson, P.C. and the Oregon State Bar Professional Liability Fund, (2) Proposed Final Claim Bar Order, and (3) Hearing Date
August 12, 2011 UPDATE:
The following Unopposed Motion for Preliminary Approval of Class Action Settlement and related documents have been filed with the Court. They are available for review through the links below.
Unopposed Motion for Preliminary Approval of Class Action Settlement
Memorandum in Support of Unopposed Motion for Preliminary Approval of Class Action Settlement
Exhibit A: Settlement Agreement
Exhibit B: Notice
Order Preliminarily Approving Class Action Settlement and Setting Procedures
March 29, 2011 UPDATE: Claimant Update Letter
The Receiver recently sent an update letter to claimants updating them on the status of various aspects of this case. This letter is available through the link below.
Claimant Update Letter
March 21, 2011 UPDATE: Investor Tax Forms
The majority of tax returns for Holdco (Blackstone/Emeritus) properties, as well as all Lonestar properties, have been filed. K-1's related to these properties are completed. K-1's for other properties, including Trustco and Divestco properties, will be available in batches starting after April 15th. To clarify where each property fits into this process, property lists for completed K-1's, as well as a list of properties for K-1's still pending as of April 15th are available through the links below.
An explanation of common concerns over completed K-1's is available through the link below. Investors are strongly encouraged to review their K-1's, and the information in the explanation document if necessary, with their certified tax professionals.
Various tax forms have been issued to certain investors related to their 2010 Sunwest interests. The document available through the link below should provide clarification on the timing and recipients of these forms. Please note that not all investor interests generated a 2010 K-1 or 1099.
February 18, 2011 UPDATE:
The court has approved an Order Approving Settlement and Entering Final Claim Bar Order & Injunction with Davis Wright Tremaine LLP, K&L Gates LLP, and Thompson & Knight LLP. The order is available through the link below.
Order Approving Settlement & Entering Final Claim Bar Order and Injunction
January 18, 2011 UPDATE:
The following additional documents regarding the third party settlements have been filed with the Court. The deadline for class members to object to the fee petitions filed is January 18, 2011, and they are available below for review.
January 17, 2011 UPDATE:
The following additional documents regarding the third party settlements have been filed with the Court. The deadline for class members to object to the fee petitions filed is January 18, 2011, and they are available below for review.
December 28, 2010 UPDATE:
The following documents regarding the third party settlements have been filed with the Court. The deadline for class members to object to the fee petitions filed is January 18, 2011, and they are available below for review.
December 22, 2010 UPDATE:
Today, December 22, 2010, the first distribution checks were mailed from Portland, OR to all claimants with allowable claims. Please allow 2-3 weeks to receive your check by mail. After that period, if you still have not received your check or have questions, please feel free to contact us by phone or via email at sunwestclaims@grassmueckgroup.com.
For those who are expecting stock distributions, we expect to send letters out to that regard next week.
December 15, 2010 UPDATE:
A letter went out to investors today outlining the current status of many aspects in this case. A copy of this letter is available through the link below.
Claimant Letter
December 1, 2010 UPDATE:
The Court has rescheduled the fairness hearing to February 9, 2011 at 10:00 am. This applies to both class settlements and the Receiver's Motion to Approve.
November 11, 2010 UPDATE:
The Receiver has filed a Motion for an Order Establishing Allowed Amounts for Claims. The Motion, and related exhibits, are available through the links below.
 Exhibit 1: Claims Exhibit - claimants may look up their claims in this document. November 10, 2010 UPDATE:
The Receiver has filed actions against Davis Wright Tremaine LLP, K&L Gates LLP, and Thompson & Knight LLP alleging claims arising from services that they provided to one or more of the Receivership entities. Recently, the parties agreed on settlements in each case during a mediation that was overseen by the court. Those parties who may be affected have been notified of these Settlements via US mail. The Settlements, related documents, and notices are available through the links below.
Class Notice: sent to all investors in Sunwest Management, Inc.
September 28, 2010 UPDATE:
The court has entered an order scheduling mediation for unresolved claims issues. Claimants who disagree with the Receiver's proposed treatment of their claims are encouraged to contact our office. Those who cannot resolve their disputes may be scheduled for mediation during October 18th-20th, at the U.S. Courthouse in Eugene, Oregon. The Order, and claimant notification letter are available through the links below.
July 21, 2010 UPDATE:
The court has approved an Order confirming the Receiver, CRO & Debtor's Second Amended Joint Plan of Reorganization. The order is available through the link below, and the entire Plan is available on the Stayton SW Assisted Living, LLC et al Chapter 11 Bankruptcy Page.
Order confirming the Receiver, CRO & Debtor's Second Amended Joint Plan of Reorganization
July 15, 2010 UPDATE:
On July 13, 2010, the court confirmed the Plan of Reorganization filed in Case 09-cv-6082 Stayton SW Assisted Living, LLC, et al. The press release relating to this confirmation is available through the link below.
District Court Confirms Sunwest Plan of Reorganization
July 9, 2010 UPDATE:
On July 7, 2010, the Receiver hosted a webinar to clarify the claims process and address common questions and concerns. A recording of this webinar, as well as a PDF file of the slides presented, are available through the links below.
Claims Process Presentation
Claims Process Presentation Recording
May 19, 2010 UPDATE:
The court has entered an Order Approving Agreement of Purchase and Sale with BRE/SW Portfolio LLC ("Blackstone"). The order is available through the link below.
Order Approving Agreement of Purchase and Sale
May 3, 2010 UPDATE:
The court has approved an Order Approving Bare Land Election Terms of Distribution Plan of Receiver and Chief Restructuring Officer. The deadline for filing a Bare Land Election was extended to May 14, 2010. The order is available through the link below.
Order Approving Bare Land Election Terms
April 13, 2010 UPDATE:
A letter went out to investors today outlining the current status of many aspects in this case. This correspondence also defines certain deadlines that investors may want to be aware of. A copy of this letter is available through the link below.
Investor Update
March 29, 2010 ANNOUNCEMENT:
The court has entered an Order approving Auction Process, Bidding Procedures, Overbid Protection, Breakup Fee and Expense Reimbursement, and Approving form and manner of Notice and Scheduling a Hearing for Final Approval of Sale. The Order, including exhibits, is available through the link below.
Order Approving Auction Process with Exhibits
March 24, 2010 ANNOUNCEMENT:
Claims Bar Date and Election Notice Deadline Extended
The claims bar date, and deadline for submitting a notice of election, for the claims process in both the case of the Securities and Exchange Commission v. Sunwest Management, Inc. et al., and the Stayton SW Assisted Living, LLC Bankruptcy case has been extended by order of the court.The claims bar date, as well as the deadline for submitting a notice of election, is no longer March 31, 2010, and is now April 30, 2010.
February 19, 2010 - Claim Form Explanation
The design and verbiage of the claim form has prompted many requests for clarification. A copy of the Proof of Claim form, including a detailed explanation of each section, is available through the link below. Each section is numbered and corresponds to a numbered list of explanations following the form.
Claim Form Explanation
January 20, 2010 UPDATE:
Receiver Michael A. Grassmueck and Chief Restructuring Officer Clyde Hamstreet have signed an agreement to sell 134 senior living facilities to BRE/SW Portfolio LLC ("Blackstone"), a group comprised of The Blackstone Group, Emeritus Senior Living, and Columbia Pacific Advisors. This agreement must be approved by the Court and will be subject to an upset bid procedure. The Receiver is confident that the agreement with Blackstone will encourage competition from other potential purchasers. Related documents are available below.
 Motion for Approval of Auction Process, Bidding Procedures, Overbid Protection, Break-Up Fee and Expense Reimbursement, and Approving Form and Manner of Notice and Scheduling a hearing for Final Approval of Sale Exhibit 2 - Notice of Auction and Sale Hearing
Claims Procedure Update:
On November 3rd, 2009, an order was entered approving the claims procedure in both the case of the Securities and Exchange Commission v. Sunwest Management, Inc. et al., and the Stayton SW Assisted Living, LLC Bankruptcy case. A notice of bar date and notice of election form were sent to potential claimants. The order approving the claims procedure, claim form, and election forms are available through the links below. The claims bar date is set for March 31, 2010. In order to file a claim, please read and follow all instructions included with the approved claim form as noticed, and available through the link below.
Some of the most common questions resulting from the receipt of these documents have been answered in the document available below. Should you have additional questions after reviewing these documents, please feel free to contact the Receiver's dedicated Sunwest Claims Hotline at (866) 674-6791. You may also wish to review the Claim Form Explanation, available on the Distribution Plan page.
Frequently Asked Questions
For your convenience, available below is the most current list of Receivership entities including addresses. If you wish to determine whether a company you have been involved with is part of Sunwest Management, Inc., these lists may be a helpful tool for INFORMATIONAL USE ONLY. They are not meant to provide an all-inclusive list of the Sunwest entities. Each document contains the same information, but is sorted differently, by Facility Name, Entity Name, and State, for your convenience.
October 2, 2009 UPDATE:
Judge Michael R. Hogan has entered an Order approving the Distribution Plan with certain exceptions. The Order, and related documents, can be viewed on the Sunwest Distribution Plan page.
INITIAL REPORT OF RECEIVER
Below is the Initial Report of Receiver Michael A. Grassmueck filed April 24, 2009.
Initial Report of Receiver
FACILITY SUMMARIES
Below is the scanned version on the Facility Summary notebook as discussed in the April 6, 2009 court hearing. Please note that it is divided into four sections alphabetically and that each document is large so please be patient while downloading.
INVESTOR MEETING ANNOUNCEMENT
Monday, March 30, 2009, 4:30pm at Los Angeles Sheraton Gateway (Los Angeles, California)
Tuesday, March 31, 2009, 4:00pm at Holiday Inn Portland Airport (Portland, Oregon)
Tuesday, March 31, 2009, 7:00pm at Holiday Inn Portland Airport (Portland, Oregon)
The Court signed an Order granting the SEC's request for Preliminary Injunction and Appointment of a Receiver. The Order is below.
Order Granting Preliminary Injunction and Appointing Receiver
The SEC's complaint and supporting documents are below.
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