Charleston, WV (WOWK) – Thomas Health has finalized all required documents and emerged from Chapter 11 bankruptcy as of Monday, Sept. 28, just eight months after it sought protection to address its long-term debt.
The hospital first said on June 18 it had filed a plan with a capital partner which included terms to provide for the discounted refunding of nearly $145 million in outstanding bond debt.
On August 14, Thomas Health announced it had reached an agreement negotiated with various parties, to provide a significant reduction of the company’s long-term debt.
“We began the restructuring process with a clear goal of strengthening our balance sheet for long-term growth and success,” says Dan Lauffer, President and CEO of Thomas Health. “The ability to achieve our goal is a testament to our committed staff and physicians. We have ambitious plans for Thomas Health to further support not only our communities and patients but also our highly-skilled
physicians and employees,” Lauffer continued, “congratulations to the Thomas Health board, employees, and physicians without whom, this process could not have been as successful as it was.”
Thomas Health first sought Chapter 11 bankruptcy protection to reorganize its finances and create strategic alternatives such as restructuring options to address its long-term debt on Jan. 10, 2020.