BGD Helps Private Hospital Client Get a Fresh Start
Bloomington’s Monroe Hospital LLC is ready for a new start after filing for Chapter 11 bankruptcy last year, thanks to the team effort of James R. Irving, Susan H. Mays, Whitney Mosby, Thomas C. Scherer and others. Judge James M. Carr of the U.S. Bankruptcy Court for the Southern District of Indiana confirmed the liquidation plan of the former medical facility operator in Indianapolis on Wednesday, Feb. 11.
The plan, funded by the sale of the debtor's namesake hospital, took effect on March 11. The sale to an affiliate of Prime Healthcare Services Inc. closed on Dec. 31. Monroe Hospital filed for bankruptcy reorganization in August 2014.
Irving discussed the details of this widely-publicized bankruptcy case during a recent interview with The Deal Pipeline. "I think it's a great outcome for every party involved. The most important thing is that the community kept its hospital that is still going to employ people and perform medical services. The lender/landlord has a new tenant ... and the buyer has a new facility," he said. Irving, Mosby and Scherer serve as lead debtor counsel.
Under the plan, the debtor will pay administrative, priority and priority tax claims in full in cash. Secured lender and landlord MPT Bloomington LLC will have its $5 million debtor-in possession loan paid by Prime Healthcare Services Monroe LLC. MPT will retain a deficiency claim, on which it likely will not receive a recovery. MPT is estimated to recover about 4.1 percent on its total claim of $121.75 million. General unsecured creditors, owed about $13 million, will receive a pro rata share of a trust established for that purpose.
Additional details are included in Irving’s interview, which you can read here. The facility’s creditor repayment was also discussed in the Dow Jones Daily Bankruptcy Daily Review.