Downey Regional in California Exits Chapter 11 Bankruptcy

Downey (Calif.) Regional Medical Center announced it closed on exit financing in a $52 million loan transaction and is no longer in Chapter 11 reorganization.

DRMC issued $32 million in new, taxable bonds through the Independent Cities Financing Authority and entered into a $20 million accounts receivable facility with Midcap Financial.

The hospital first filed for bankruptcy in 2009 after accumulating roughly $100 million in debt, according to a Downey Beat report.

Kenneth Strople, DRMC president and CEO, said emerging from bankruptcy was a "collaborative" effort among the administration, physicians, nurses, staff and community. During the Chapter 11 reorganization, the hospital was able to purchase a new cath lab and other equipment and paid down more than $17 million to creditors, according to the news release.

Creditors will continue to receive owed payments over the next several years.

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