Philly Hospital's $65M DIP Loan Approved After Roll-Up Tweak

Law360, Wilmington (July 12, 2019, 10:54 PM EDT) -- Bankrupt hospital operator Center City Healthcare LLC received court approval Friday in Delaware to access a portion of a $65 million post-petition loan after making changes to debt repayment provisions the court said served to secure improved treatment for the lenders by holding patients hostage.

During a hearing in Wilmington, U.S. Bankruptcy Judge Kevin Gross raised concerns with attorneys for Center City Healthcare and its lenders about a roll-up of prepetition debt that he said appeared unseemly given the debtor's need for financing in the face of a closure of one of its Philadelphia hospitals, saying the lender was taking advantage...

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