Victory Memorial Hospital secures $2 million DIP loan to take it through sale closing

By Caroline Salls

Pittsburgh, July 31 - Victory Memorial Hospital has received a commitment for $2 million in unsecured post-bankruptcy financing from Borgen Funding, LLC, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

Victory said the financing will be used to pay post-bankruptcy operating expenses, including payroll.

In addition, the hospital said roughly $1 million of the DIP loan will be used to make benefit payments owed to its employee benefits fund for union workers.

The facility is designed to provide Victory with additional funding to continue as a going concern until it completes the sale of some of its assets to Dervaal, LLC, the motion said.

The DIP facility will mature in 180 days. Interest will be Prime rate plus 300 basis points.

Victory Memorial, a Brooklyn, N.Y.-based hospital, filed for bankruptcy on Nov. 15, 2006. Its Chapter 11 case number is 06-44387.

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