CHARLESTON, WV (WOWK) — Thomas Health has announced it has reached an agreement to fund a Chapter 11 plan of reorganization.
The plan would allow Thomas Health to emerge from Chapter 11 bankruptcy just over seven months after it sought protection to address to reorganize their finances on Jan. 10, 2020.
The reorganization plan, which was approved Aug. 14, includes terms providing for the discounted refunding of nearly $145 million in outstanding bond debt.
Rosemawr Management, an alternative investment firm focused exclusively on investing in the United States municipal market, will be providing the exit financing for Thomas Health.
“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.”Dan Lauffer, President and CEO of Thomas Health
The Chapter 11 plan, which was negotiated with various parties, provides a significant reduction of the company’s long-term debt. Thomas Health anticipates the required documents and financing will be completed by mid-September.