Meadowbrook, Pa.-based Redeemer Health has defaulted on a required bond payment, according to an Oct. 8 notice posted through the Electronic Municipal Market Access system.
The bonds are publicly traded, tax-exempt municipal bonds for which the system is obligated. The outstanding principal is about $87 million, and payments were due Sept. 1 and Oct. 1, a spokesperson for Redeemer said in a statement shared with Becker’s.
“This notice was anticipated,” the statement said. “As we recently shared, leadership is working with our financial advisors and counsel to implement a reorganization of our healthcare system to ensure its continued viability and a sustainable business model.”
The news comes after Redeemer named Jim Logue interim CEO and brought former CFO Michael Keen back to that role in late September amid restructuring. The system shared that Greg Wozniak was no longer in the CEO role and CFO Kim Cummings resigned, effective Sept. 30.
Redeemer is also working with the agent for the bondholders, along with other parties like area health systems, to determine its best path forward and maintain operations.
