Steward Health Care Files for Bankruptcy, Hospitals Monitored
Published on May 6, 2024
The Steward Health Care system, the largest physician-led hospital operator in the United States, filed for bankruptcy and is currently negotiating a financing deal to restructure its business. The filing was submitted in the U.S. Bankruptcy Court for the Southern District of Texas on Monday, according to a press release on May 6. The firm is currently negotiating a debtor-in-possession (DIP) financing arrangement from Medical Properties Trust (MPT). DIP financing, available to firms that have filed Chapter 11 bankruptcy, allows companies to raise capital to fund operations while the bankruptcy process progresses. Lenders who provide DIP financing get priority over existing debt holders, equity holders, and other claims....