Butler Health System is moving forward with their bond trustee to wave a debt service requirement.
A $15 million loan could be modified in exchange for BHS agreeing to enhanced financial reporting and posting additional collateral, including Clarion Hospital real estate.
According to the system’s Chief Financial Officer Tom Albanesi,
“We are gratified that both our lender groups have been very cooperative throughout these negotiations. While anticipating a tentative agreement, we are awaiting contact from the bondholders’ counsel as to the definitive outcome of their discussion. Our focus remains on our turnaround initiatives that are providing positive results for our organization.”
No debt has been relieved as a result of this agreement.
In the last fiscal year, Butler Health System saw a $40.1 million loss in operations which works out to about half the loss of the year before. BHS is now a part of Independence Health System but still carries debt.