PACS Group enters forbearance on credit defaults; president P.J. Sanford resigns

PACS Group, Inc.

Lenders agreed to forbear until Oct 31, 2025 (extendable to Nov 30) on representation/warranty defaults for FY2024 and Q1 2025.
Defaults also triggered under Omega Master Lease; landlords joined forbearance.
Borrower must maintain min liquidity of $100M; no new loans or limited investments during forbearance.
President P.J. Sanford resigned Aug 15, 2025; consulting deal pays $16,666/month for up to 12 months with equity vesting.
Company will subsidize 12 months of Sanford's COBRA premiums under separation agreement.

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