LifeCare, a Plano, Texas-based long-term acute-care hospital operator, announced today that it has filed for bankruptcy and that its senior secured lenders are taking over the company four months after it defaulted on an interest payment.
LifeCare filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware to implement the transaction, the company said in a new release (PDF). JPMorgan Chase will provide $25 million in debtor in possession financing, subject to court approval. The company also has $20 million in cash on hand.
The company has requested a hearing on Thursday to continue to honor benefits programs for its employees.