Houston's University General Health System Inc. on Friday filed for chapter 11 protection, the victim of unprofitable acquisitions, bad managed care agreements and an alleged overestimate of its financial condition, Dow Jones Daily Bankruptcy Review reported today. In a petition filed with U.S. Bankruptcy Court in Houston, the company and eight affiliates listed assets between $1 million and $10 million and liabilities of between $10 million and $50 million. Finances at University General have quickly deteriorated in recent months. The company's top secured lender, MidCap Financial Trust, late last year forced senior management to sign personal guarantees that University General "would only pay items approved by MidCap," and temporarily not pay its restructuring advisers, the hospital company said in its declaration filed with the court. It said that top hospital officers actually had to pay for some medical supplies out of their own pockets. Read more. (Subscription required.)
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