Thomas Health submits plan to exit Chapter 11 bankruptcy

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CHARLESTON, W.Va. (WSAZ) – Thomas Health and its subsidiaries have announced that they have reached an agreement in principle with a new capital partner to fund a Chapter 11 to come out of bankruptcy.

Thomas Health made the announcement on Friday.

The plan, which was tabled on June 18, will be a reorganization that would allow the healthcare system to emerge from Chapter 11 bankruptcy just over six months after seeking protection to deal with its long-term debt on the 10th. January. To learn more about our stories on this, Click here.

Thomas Health says the plan includes terms that provide for the discounted repayment of nearly $ 145 million of outstanding bond debt. Hamlin Capital Management, LLC, is representing investors in the new financing that will allow the hospital to come out of bankruptcy if approved.

Hamlin Capital Management, LLC, is a New York-based SEC-registered investment advisory firm that oversees $ 4.5 billion in client assets and specializes in unrated tax-exempt bonds and bankruptcy restructurings. .

“Being able to table a viable plan that will restructure and strengthen our balance sheet, while maintaining and continuing to treat our patients, especially during times as unprecedented as the past 90 days, is a testament to the hard work of our employees. Says Dan Lauffer, President and CEO.

“It’s business as usual at Thomas Health, and our team is here, fully prepared to meet the care needs of patients. This step is just the start of what we plan to accomplish today and tomorrow. We have ambitious plans for Thomas Health to support not only our patients and the community, but also our highly qualified physicians and committed employees, ”according to Lauffer.

The Chapter 11 plan envisions a significant reduction in the company’s long-term debt. If approved, this plan would give Thomas Health financial flexibility to support further investments in its long-term growth, continue its mission to the community, and strengthen its commitment to patients and employees.

According to Thomas Health officials, in order to restructure, the hospital and its direct and indirect subsidiaries voluntarily filed claims for relief under Chapter 11 of the United States Bankruptcy Code in the Southern District of West Virginia.

Hospital officials believe this plan will go into effect within the next 60 to 75 days.

Thomas Health says it will continue to provide uninterrupted quality care and work with its business partners as usual.

Thomas Health is represented in the Chapter 11 proceeding by Whiteford, Taylor and Preston, LLP as legal advisor, SOLIC Capital Advisors as investment banking and restructuring advisor and Force 10 Partners as financial advisor.

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