Astria Health seeks third extension of exclusive plan periods

By Caroline Salls

Pittsburgh, Feb. 3 – Astria Health is seeking a third extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Friday with the U.S. Bankruptcy Court for the Eastern District of Washington.

The company is asking the court to extend its exclusive plan-filing period to June 1 from Jan. 31 and the solicitation period to July 29 from March 31.

Astria said a final hearing on its motion for approval of replacement debtor-in-possession financing is scheduled for Feb. 5.

As previously reported, the court approved the company’s motion to close Astria Regional Medical Center on Jan. 8.

Since then, Astria said it has been implementing its closure plan in an attempt to improve cash flow to fund operations at its remaining two acute care hospitals.

In addition, the company said it is continuing to work toward obtaining exit financing sufficient to support a consensual plan of reorganization for the hospitals.

According to the motion, the efforts of Astria’s investment banker have also been expanded to include marketing for a potential sale of some or all of the company’s assets “to better ensure a positive outcome for stakeholders.”

“The debtors believe they are moving to a viable Chapter 11 plan,” the motion said. “The proposed extension of the exclusive periods is narrowly tailored to run in parallel with the IB’s refinancing and sale efforts.”

Astria Health is a Yakima, Wash., health care facility operator. The company filed bankruptcy on May 6, 2019 under Chapter 11 case number 19-01189.

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