In April, several creditors took legal action by filing an involuntary bankruptcy petition, seeking to force two Specialty Hospital of Washington (D.C.) facilities into bankruptcy. In response, Specialty is voluntarily filing for Chapter 11 bankruptcy.
Silver Point has agreed to buy Specialty’s Hill and Hadley campuses and loan Specialty $15 million to enable it to continue operations until its assets are sold by the court through the bankruptcy proceeding, according to the report.
Employee pay will continue without interruption, and Specialty does not anticipate any layoffs throughout the term of the bankruptcy process, according to the report.
More Articles on Hospital Bankruptcy:
Nicholas County Hospital to File for Bankruptcy, Shut Down
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Creditors Could Drive Specialty Hospital of Washington Facilities to Bankruptcy
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