The agreement resolves an impasse that threatened to derail the potential sale of the hospitals and prompted Massachusetts authorities to pause the $30 million lifeline to Steward. After the agreement was described in court, Judge Christopher Lopez said he’d authorize the financial arrangement between Steward and the state.
Transferring real estate to Apollo will help facilitate the sale of hospitals to new owners, Cohen said, adding that Steward has also made progress on the commercial terms and purchase agreements related to the proposed sales. Buyers’ names weren’t disclosed at Tuesday hearing, though Cohen described them as “high quality, local” hospital operators.
The state funding isn’t in the form of traditional Chapter 11 loans. Instead, Massachusetts has agreed to make advance payments through various state programs to support the six Steward hospitals as they are transitioned to new owners, according to court documents.
Steward, which filed Chapter 11 in May, won bankruptcy court permission last week to close two other Massachusetts hospitals that it said didn’t receive “viable” bids.
The bankruptcy case is Steward Health Care System LLC, 24-90213, US Bankruptcy Court for the Southern District Court of Texas.
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