Mercy Hospital seeks court approval of $30 million DIP revolver

By Sarah Lizee

Olympia, Wash., Feb. 12 – Mercy Hospital and Medical Center is seeking court approval to access a $30 million debtor-in-possession revolving credit facility from Trinity Health Corp., the hospital’s owner, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Northern District of Illinois.

Mercy is seeking interim access to $5 million of the facility.

The loan will bear interest at 5% per annum, with a default interest rate of 8% per annum.

The facility will mature on the earliest of July 1, the date a plan is confirmed, the date of conversion of the cases to Chapter 7, the date a trustee is appointed, the date the case is dismissed, 45 days after entry into the interim order if a final order hasn’t been entered by then, the date on which the court approves DIP financing from another lender, the date a sale of all of the debtor’s assets closes, and five business days after the lenders sends notification of an event of default.

Proceeds will be used for general working capital and administration of the bankruptcy cases.

Mercy Hospital and Medical Center is a 292-bed general medical and surgical Catholic teaching hospital in Chicago that filed bankruptcy on Feb. 10 under Chapter 11 case number 21-01805.

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