Under the proposed deal, private equity firm Argenta Group would take out a loan to refinance the physician-owned hospital and then lease the facility to Clark County. The county would then sublease the facility to the hospital’s owners. Argenta would secure funding through a tenet-credit lease, which gives the company the ability to secure funding using the expected lease payments as security.
The hospital filed for bankruptcy in Sept. 2010. It has since been working to refinance its debt.
County officials are expected to review the proposal and have asked the U. S. Bankruptcy Court Southern District of Indiana for additional time to consider the plan.
Related Articles on Kentuckiana Medical Center:
Judge Gives Indiana’s Kentuckiana Medical Center One Month to End Bankruptcy
Indiana’s Kentuckiana Medical Center Proposes ER to Ease Financial Burden
Indiana Physician-Owned Hospital Files for Bankruptcy
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