Vanguard Healthcare looks to pay professionals, eyes Feb. 1 exit date

By Caroline Salls

Pittsburgh, Jan. 24 – Vanguard Healthcare, LLC requested court approval to use cash collateral to pay $1.72 million in professionals’ fees and expenses, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Middle District of Tennessee.

Vanguard said its cash collateral use is scheduled to expire on Jan. 31, and the existing cash collateral order restricts the use of the cash collateral for payment of professional fees and expenses.

“The debtors desire to pay all allowed interim professional fees and expenses on or before Jan. 31, 2018 so that payments will be made before the end of the fiscal year for certain law firms,” the motion said.

Vanguard said its lender will not consent to the use of the cash collateral for the proposed purpose until restructured loan documents have been fully executed.

The company said it expects the loan documents to close by Jan. 31 and expects its Chapter 11 plan to take effect on Feb. 1, but it is requesting access to the cash collateral “in an abundance of caution” in case the closing does not occur in time to make the payments to the professionals on Jan. 31.

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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