CASE PROFILE: Healthcare services provider Prospect Medical seeks to sell assets in Chapter 11, backed by two DIP facilities
Prospect Medical Holdings, a healthcare services provider that owns several hospitals, has entered bankruptcy protection to pursue selling off its assets, armed with two debtor-in-possession (DIP) financing facilities.
Of the two DIP facilities, one is an ABL loan from prepetition lender eCapital Healthcare Corp, which includes both USD 90m in new money and a “creeping” dollar-for-dollar roll-up of prepetition debt. The other DIP, from JMB Capital Partners Lending, LLC, provides USD 100m in new money term loan financing.
The company entered bankruptcy protection on Sunday (12 January) and subsequently filed a declaration in support of first day motions last night (13 January). Judge Stacey Jernigan of the US Bankruptcy Court for the Northern District of Texas has scheduled a first day hearing for today (14 January) at 1:30pm CT.