Steward Health Care expects it will have “only approximately $20 million in cash on hand” by the end of the week, an executive said in documents filed with a request for U.S. Bankruptcy Court to approve a new infusion of up to $225 million to keep the bankrupt hospital network afloat through the summer.
Steward Chief Restructuring Officer John Castellano wrote in a court filing that the company “require[s] immediate access to additional [debtor-in-possession] financing to continue to operate, including making payroll for tens of thousands of employees (including physicians and other medical personnel) and payments to vendors and other suppliers who provide critical goods and services that are necessary for the Debtors to deliver quality patient care.”
The company is asking Bankruptcy Court Judge Christopher Lopez to authorize it to obtain $225 million of postpetition financing under a new “debtor-in-possession multiple draw term loan credit facility.” A hearing on the request is scheduled for Thursday at 2 p.m. ET in Houston, Texas.
Steward said in filings that its pending financing package “provides the best terms and the most certain path” to keeping Steward hospitals — including eight in Massachusetts — open as the company takes offers on them until June 24 “for the benefit of all of their stakeholders, including the Debtors’ employees, skilled health care workers, and patients.”
The timeline that Lopez approved last week set a deadline for bids on Steward’s Massachusetts hospitals (and hospitals in other states aside from Florida) of June 24 and scheduled sale hearings to be held July 11. Steward is proposing to sell its physician services network, Stewardship Health, along the same timeline.
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