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This afternoon, June 13, 2019, the United States Bankruptcy Court for the Eastern District of Washington, Yakima Division approved the permanent and final order for $36 million in financing to allow Astria Health to continue in its positive trajectory until Astria Health can restructure its debt and emerge from Chapter 11.
The Court again overruled erroneous objections raised by the San Francisco based Lapis Advisers on all grounds. The judge also recognized that Astria Health’s enterprise value was so high that the secured creditors did not need to receive interest payments or any other protections while Astria Health uses existing funds to further invest in the Yakima Valley-based health system and while it is reinvesting and restructuring its debt during this process.
“We are pleased with today’s decision. It is another important step in our efforts to reorganize our debts and emerge from this process,” said John Gallagher, President and Chief Executive Officer, Astria Health. “We have every confidence that we will be able to continue to grow and provide health care that is locally-based. The Astria Sunnyside Hospital continues to grow, Astria Toppenish Hospital has also stabilized operations through the addition of its behavioral health programs, and the Astria Regional Medical Center continues to bring world-class emergency care, cardiac care, and other specialties right here to the Valley so people don’t have to travel long distances for care.”
Posted June 13, 2019