| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers L > Headlines for LRG Health Care > News item |
LRGHealthcare gets court approval to access $3 million of DIP loan
By Sarah Lizee
Olympia, Wash., March 29 – LRGHealthcare secured court approval to access $3 million of a $6 million debtor-in-possession facility with Concord Hospital, Inc. as lender, according to an interim order filed Monday with the U.S. Bankruptcy Court for the District of New Hampshire.
As previously reported, LRGHealthcare received court approval to sell its assets to Concord for a purchase price of $30 million.
The company said that while it hoped to complete the sale on or before April 1, due to the New Hampshire state approval process it is possible that the closing will not occur until later.
Consistent with the debtor’s cash collateral budgets, with continued operations the debtor said it will effectively be left with only $500,000 in available cash on April 2, and effectively out of cash by April 17.
The company also obtained court approval of an amendment to the purchase agreement with Concord. The amendment, combined with the DIP financing, is designed to bridge any liquidity shortfalls before the sale can close.
The facility will terminate on the earliest of May 2, the termination of the asset purchase agreement, the acceleration of the loan following an event of default and the closing of the sale.
Interest will be 5% until May 1, and 7.5% after that. The default rate is 10%.
A final hearing on the DIP financing is scheduled for April 6.
LRGHealthcare is a Laconia, N.H.-based not-for-profit health care charitable trust operating Lakes Region General Hospital, Franklin Regional Hospital and several other affiliated medical practices and service programs. The company filed Chapter 11 bankruptcy on Oct. 19 under case number 20-10892.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.