Toledo, Ohio-based ProMedica, which called off plans to build a new Michigan hospital after it reported a $39.8 million second-quarter operating loss, is now seeking further extensions to existing covenant suspensions.
The 11-hospital system is also dealing with a delayed sale of its hospice and home care division, according to an Aug. 17 filing. Proceeds from an eventual sale will be used to draw down some of the system’s debts, according to the filing.
Outstanding obligations total $453 million.
“The system and the financial institutions are currently negotiating further extensions of the covenant suspension to provide additional time to address regulatory compliance for the proposed sale,” according to the filing.
“ProMedica is working diligently to move the transaction forward as quickly as possible,” the system reportedly told Becker’s.
