Charleston, WV (WOWK) – Thomas Health and its subsidiaries have reached an agreement in principle with a new capital partner to fund a Chapter 11 plan of reorganization. The health system says the plan would allow them to emerge from Chapter 11 bankruptcy just over six months after it
sought protection on January 10, 2020.
The plan, filed June 18, includes terms to provide for the discounted refunding of nearly $145 million in outstanding bond debt, according to Thomas Health. If the plan is approved, Hamlin Capital Management, LLC, a New York-based, SEC-registered investment advisory firm, will serve as the representative of the investors in the new financing.
“To be in the position to file a viable plan that will restructure and strengthen our balance sheet, while maintaining and continuing to treat our patients, especially during times as unprecedented as the last 90 days, is a testament to the hard work of our employees. It’s business as usual at Thomas Health, and our team is here, fully prepared to meet patient care needs. This milestone is just the beginning of what we plan to achieve moving forward today and tomorrow. We have ambitious plans for Thomas Health to support not only our patients and community but also our highly-skilled physicians and committed employees.”Dan Lauffer, President and CEO.
The Chapter 11 plan contemplates a significant reduction of the company’s long-term debt, according to Thomas Health. If confirmed by the Bankruptcy Court, the company says its plan will
provide financial flexibility to support further investment in long-term growth and strengthen its commitment to patients and employees. The plan will go into effect with in the next 60-75 days if approved.