UPDATE 1-Sunrise gets "going concern" notice
* gets "going concern" notice
* sufficient cash balance for operations till March 31
* may be forced to file for bankruptcy
March 2 (Reuters) - Sunrise Senior Living Inc (SRZ.N), a provider of senior living services, said its auditors have cast doubts on the firm's ability to continue as a going concern, adding that it has sufficient cash balances to meet its obligations through March 31.
In a regulatory filing, the company said it was seeking ways to preserve cash, reduce financial obligations and reach negotiated settlements with various creditors to preserve liquidity.
Sunrise said it may be forced to file for bankruptcy protection if it was unable to obtain necessary waivers or restructure its financial obligations.
The company said it was engaged in discussions with various venture partners and third parties regarding the sale of certain assets to increase liquidity and reduce its obligations.
The company currently cannot borrow additional funds under the bank credit facility and has significant debt maturing in 2009 and 2010.
As of December 31, 2008, the company's total debt was $636.1 million and had $29.5 million of cash and cash equivalents. It posted a net loss of $439.2 million for the year.
Net loss for the fourth quarter was $305.6 million or $6.07 a share, compared to a net loss of $124 million, or $2.48 a share, in the year-ago period.
Sunrise said it has stopped funding or cut payments for certain projects such as its development projects in Germany, Fountains portfolio and Aston Gardens venture.
Shares of Sunrise closed at $0.66 Friday on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Anil D'Silva)
