Quorum Health's $100M DIP Approved Over Investor Objection

Law360 (May 6, 2020, 7:27 PM EDT) -- Rural hospital operator Quorum Health Care Services LLC received final court approval Wednesday for $100 million in debtor-in-possession financing after a Delaware bankruptcy judge overruled the objection of a large shareholder of the debtor over the need for the financing.

During a lengthy hearing conducted via telephone and videoconference, U.S. Bankruptcy Judge Karen B. Owens approved the post-petition loan from existing noteholders despite the arguments of investor Mudrick Capital Management LLC, which said government aid made available to hospitals in response to the COVID-19 outbreak would cover operational shortfalls.

The debtor said it has already received tens of millions of dollars from...

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