Vanguard Healthcare seeks approval to obtain $2 million unsecured loan

By Caroline Salls

Pittsburgh, March 13 – Vanguard Healthcare, LLC requested court approval to obtain a $2 million unsecured loan, according to a motion filed Monday with the U.S. Bankruptcy Court for the Middle District of Tennessee.

The company said its operations require additional capital as it seeks confirmation of its first amended joint plan of reorganization.

As a result, Vanguard Healthcare said it is prepared to execute a convertible promissory note in favor of Hisashi Yokoi to obtain $2 million in working capital for its ongoing operations and the payment of administrative expenses that will be due on the plan effective date.

Under the proposed loan, the company will receive $2 million in exchange for its agreement to make monthly payments of accrued interest at a fixed rate of 7%.

Assuming approval by March 31, the loan will mature in five years on April 30, 2022, at which time, at the option of Yokoi, Yokoi may convert the loan to a 10% equity interest in Vanguard Healthcare or Vanguard Healthcare will pay an amount equal to all outstanding principal, plus all accrued and unpaid interest, that has accrued on the loan.

Vanguard is a Brentwood, Tenn., long-term care provider. The company filed bankruptcy on May 6, 2016 under Chapter 11 case number 16-03296.

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