A series of deals struck in the halls of a Delaware courthouse have averted a sudden shutdown of St. Christopher’s Hospital for Children, a thriving institution linked to Philadelphia’s failed Hahnemann University Hospital, WSJ Pro Bankruptcy reported. Hahnemann, St. Christopher’s and related medical businesses filed for chapter 11 bankruptcy protection in July, with plans to close Hahnemann and sell St. Christopher’s. Financing to get to a sale was offered by MidCap Financial Trust, but creditors objected, saying MidCap wasn’t offering enough money. After two days of hearings, Judge Kevin Gross said on Tuesday that he agreed with Hahnemann’s creditors and wouldn’t approve the loan without concessions from MidCap. But yesterday, Hahnemann lawyer Mark Minuti reported that MidCap had agreed to a deal. Instead of an additional $2 million to keep the operation running until money starts coming in from sales, a revised deal means Hahnemann and St. Christopher’s will have as much as $9 million in fresh cash to cover the bills in the coming weeks, Mr. Minuti reported. At a hearing in the U.S. Bankruptcy Court in Wilmington, Del., Judge Gross said that he will sign off on the changed loan agreement, keeping the money flowing to the hospitals and curing what Minuti called on Tuesday “a little bit of a crisis.” Read more.
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