Thomas Health gets interim access to bond trustee’s cash collateral

By Caroline Salls

Pittsburgh, Jan. 16 – Thomas Health System, Inc. obtained court approval to access the cash collateral of its bond trustee on an interim basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of West Virginia.

The final hearing is scheduled for Feb. 19.

The cash collateral will be used to fund Thomas Health’s operations while in bankruptcy.

The company’s access to the cash collateral will terminate on the earliest of its use of cash collateral or proceeds from other pre-bankruptcy collateral other than permitted in the interim order and budget without the consent of the bond trustee, failure to obtain a final order within 45 days of the bankruptcy filing date, the entry of an order without consent of the bond trustee that reverses, stays, vacates, amends or supplements the interim order, any lien created by the interim order ceasing to be a valid, perfected security interests, the dismissal or conversion of the Chapter 11 cases, termination of the company’s right to use cash collateral and failure to cure any other non-compliance with the interim order.

Thomas Health is a South Charleston, W.Va.-based health care provider. It filed bankruptcy on Jan. 10 under Chapter 11 case number 20-20007.

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