Medical Capital Holdings, the California healthcare finance company placed under control of a receiver by a federal judge, has negotiated a tentative deal to sell outstanding loans made to Integrated Healthcare Holdings, Santa Ana, Calif.
Medical Capital looking to sell outstanding loans
Medical Capital is facing fraud allegations by the Securities and Exchange Commission. In a monthly report to U.S. Judge David Carter, the receiver said the four-hospital Integrated Healthcare's outstanding debt totaled $81.4 million on three loans, which would be sold under the tentative agreement for $55 million.
Integrated Healthcare has asked the court to allow the system to sue Medical Capital for breach of contract and claims the finance company misappropriated $12 million, according to the report. Hospital management and Integrated Healthcare's majority shareholder have met twice with the receiver to discuss claims and the sale of its debts, the report said. The deal, once reached, will be submitted to the court for approval.
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