Philly Hospital Ch. 11 Case In Danger As Judge Questions DIP

Law360, Wilmington (August 20, 2019, 8:32 PM EDT) -- The future of a Philadelphia children’s hospital was thrown into limbo Tuesday when a Delaware bankruptcy judge said he could not approve a $65 million post-petition loan as proposed, prompting the hospital’s operator to begin last-ditch efforts to reach a new deal with its lenders.

During a hearing in Wilmington, U.S. Bankruptcy Judge Kevin Gross said the proposed debtor-in-possession financing aimed at funding Center City Healthcare’s efforts to shutter one of its hospitals and sell another as a going concern did not provide enough liquidity to the debtor relative to what the lender was getting.

“I will have great difficulty approving...

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