According to the Washington Business Journal, Specialty Hospitals of America LLC will enter into a voluntary Chapter 11 bankruptcy and sell both of its D.C. hospitals to an investment firm.
The news source reported that a group of creditors filed a bankruptcy petition against the hospital group earlier this year, and that Connecticut-based Silver Point Capital has agreed to buy the hospitals for an undisclosed term. Additionally, Silver Point has agreed to give the hospitals $15 million to continue operations until their sale is completed.
Specialty Hospitals of America is based in Portsmouth, New Hampshire.
“This is an exciting new day, a new beginning for Specialty,” Lisa Proctor, representative for Specialty Hospital of Washington, said according to the Business Journal.
The hospital group said that employee pay and benefits would continue without interruption. It also reportedly said that it does not anticipate layoffs, but that it would be in the hands of “the court”.
In April, several creditors including Amalgamated Capital Partners LLP, CroppMetcalfe, Capitol Hill Group, J-Don Enterprise LLC and JFW Service, collectively owed about $2.7 million, filed an involuntary bankruptcy petition against the hospitals in a U.S. Bankruptcy Court in Delaware.
Specialty Hospitals treats severely ill or injured patients. They are the city’s only two long-term care hospitals. According to the Business Journal, the group operates 142 long-term critical care beds and 180 nursing home beds between Capitol Hill in Northeast D.C. and Hadley in Southeast.
What Can I Do If I Cannot Afford to Pay My Bills?
Much as it is for businesses and corporations, Chapter 11 bankruptcy protection is available to individuals with high levels of debt. This type of bankruptcy allows a debtor to avoid the liquidation of assets, like cars or homes.
It should be noted that if a person does not qualify for a Chapter 11 bankruptcy, he or she may be eligible for a Chapter 7 bankruptcy, which allows a person to discharge unsecured debt like credit card debt or medical bills, which often go unpaid when financial issues arise.
There are also opportunities for people who do not qualify for Chapter 7 bankruptcy in Chapter 13 bankruptcy, which allows a person to repay debts based upon income. It is often thought of as the “wage-earner’s” bankruptcy plan, because one of the requirements for the individual filing is a steady income.
For more information about escaping the burdens of debt, you can contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: The means test calculates your average gross income over the six-month period prior to your bankruptcy filing.