Hospital operator seeks $85M loan to expedite sales in bankruptcy

Promise Healthcare Group, a hospital and nursing home chain based in Boca Raton, Fla., filed for Chapter 11 bankruptcy protection Nov. 4. The company is now seeking final approval of an $85 million loan to support operations while it tries to sell its assets, according to Reuters.

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The loan package from Wells Fargo is a “necessary bridge” to help cement the sales, Andrew Hinkelman, chief restructuring officer and interim CFO of Promise Healthcare Group, said in bankruptcy court documents filed Nov. 9.

Promise and more than 40 of its affiliates entered bankruptcy after years of financial troubles. In bankruptcy court documents, Promise reported more than $565 million in combined debt. Promise and its affiliates currently operate two short-term acute care hospitals, 14 long-term acute care hospitals and two skilled-nursing facilities.

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