Little River Healthcare Holdings LLC, the operator of two rural hospitals in Texas and other health care-related centers, has sought chapter 11 protection, WSJ Pro reported. Little River has been faced with a cash crunch and its debt load has become unsustainable, according to court papers filed Tuesday. While under bankruptcy protection, Little River plans to either sell itself or restructure its debt. In addition to rural hospitals in Rockdale and Cameron, Little River runs imaging centers, surgery centers, physical rehabilitation centers and physician practices, most of which are located in central Texas. In recent years, the health care operator expanded greatly by acquiring laboratory assets, forming other subsidiaries, buying a hospital and launching an initiative to manage hospitals in Oklahoma. But while Little River has built up its presence in the health care industry recently, it has been faced with mounting problems. Little River has $40 million in long-term debt obligations, which excludes $4 million in unpaid interest, much of which is owed to boutique lender Monroe Capital Management Advisors LLC, court papers show. Monroe has agreed to provide $42 million in bankruptcy financing to allow Little River to continue operations at its hospitals and facilities while under chapter 11 protection.
