Vanguard Healthcare eyes loan bump to meet effective date condition

By Caroline Salls

Pittsburgh, Jan. 5 – Vanguard Healthcare, LLC requested court approval to increase a loan obtained as part of the sale of its Shady Lawn assets by $50,000 to $3.8 million, according to a motion filed with the U.S. Bankruptcy Court for the Middle District of Tennessee.

Vanguard said the closing of the loan is a condition to the effectiveness of its fourth amended joint plan of reorganization, which was confirmed on Oct. 27.

“But for the approval of the increase in the guaranty obligation of Vanguard caused by the $50,000 increase in the loan, the Shady Lawn transaction is ready to close, thus eliminating the last condition to the effective date of the plan,” Vanguard said in the motion.

The company said the amount estimated by Shady Lawn to be needed for working capital has increased slightly because of greater-than-expected closing costs for the transaction.

A hearing is scheduled for Jan. 9.

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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