A federal bankruptcy judge approved an emergency loan Oct. 14 for Montgomery, Ala.-based Jackson Hospital to help keep it afloat through the holiday season, AL.com reported Oct. 15.
The ruling extends the 344-bed hospital’s debtor-in-possession loan from $22 million to $35 million.
“[The loan] gets us somewhere between Thanksgiving and Christmas,” Allen Wilen, chief restructuring officer for Jackson Hospital, said in court Oct. 15, the publication reported.
The news comes after Montgomery’s city council voted unanimously Oct. 7 to approve a nonbinding resolution to provide aid to Jackson Hospital. While no funding was approved then, the resolution made clear that future support would require additional due diligence, a formal agreement and another vote from the city council.
Jackson Hospital, which sought Chapter 11 protection in early February, revealed in October that the hospital could face closure at the end of the month without a $20 million loan to cover operating expenses and payroll.
Jackson Investment Group, which provided the initial DIP financing for Jackson Hospital, told AL.com it would commit an added $15 million, pending court approval, to keep the facility operating into February 2026, when a reorganization plan is expected to be finalized.
“Jackson Investment Group will commit whatever money is necessary to get through to the plan,” Rick Jackson, CEO of Jackson Healthcare, which is under Jackson Investment Group, told the publication. “We want people in the hospital to know, as long as things are moving forward, we will lend the money that’s necessary.”
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