Integrated Health Services, Sparks, Md., which filed for bankruptcy protection in February 2000, won U.S. Bankruptcy Court approval to pay up to $150,000 to Healthcare Finance Group, New York, to develop an exit loan for the company. The nursing home chain said it cannot emerge from Chapter 11 bankruptcy without an exit loan. Under the court-approved terms, IHS will cover the financier's expenses while it conducts due diligence. IHS said the loan would be necessary only if it pursues a standalone restructuring. The company is pursuing either a standalone restructuring or an asset sale to a single purchaser. A sale would be conducted under a plan of reorganization. IHS and affiliates filed for bankruptcy protection listing assets of $3.6 billion and liabilities of $4.1 billion. In September the company requested an eighth extension on its deadline to file a reorganization plan. -- by Julie Piotrowski
IHS seeking exit loan to emerge from bankruptcy
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