CHARLESTON, W.Va. — The plan for Thomas Health to exit Chapter 11 bankruptcy has been approved.
Thomas Health and its subsidiaries announced on Friday that is has reached an agreement with a new capital partner to fund a Chapter 11 plan of reorganization that allows the health system to emerge from Chapter 11 just over seven months after it sought protection in January.
According to a news release, the plan includes terms that provide for the discounted refunding of nearly $145 million in outstanding bond debt.
Rosemawr Management will provide the exit financing for Thomas Health.
“To be in the position to file a viable plan that will restructure and strengthen our balance sheet, while maintaining and continuing to treat our patients, especially during times as unprecedented as the last 90 days, is a testament to the hard work for our employees,” President and CEO Dan Lauffer said in a release.
Thomas Health anticipates the required documents and financing will be completed by mid-September.
Thomas Health in Kanawha County serves approximately 275,000 patients annually and employs approximately 1,650 people, according to a hospital news release sent in June.