Astria Health announced completion of the financial restructuring deal with the loan transaction of almost $75 million from MultiCare Health System on Friday, Jan. 15, according to an Astria Health media release.
Proceeds from MultiCare, the largest not-for-profit, locally owned healthcare group in Washington state was used in the payoff of the investment advisory firm Lapis Advisers and the various secured loans and revenue bonds they administered.
“MultiCare’s mission calls us to partner with other like-minded organizations to ensure that communities in the Pacific Northwest have appropriate access to health care services and a vibrant and stable system of health,” MultiCare President and CEO Bill Robertson said in the statement.
This deal also renders effective Astria’s Bankruptcy Plan of Reorganization, which received approval to move forward by U.S. Bankruptcy Court Judge Whitman L. Holt in Yakima on Wednesday, Dec. 23, 2020.
“Astria Health has faced extraordinary circumstances and uncertainty over the last 18 months. I have full confidence in the partnership Astria Health is establishing with MultiCare Health System, and the solid plan that has been developed as the company exits bankruptcy and steps forward into this new chapter,” Board Chair of Astria Health Mary Ann Bliesner stated from the release.
The $20 million sale of its Regional Medical Center in Yakima and associated medical offices on Dec. 15, helped to reduce the outstanding debt and “to more easily and rapidly exit Chapter 11,” Interim CEO and President for Astria Health Brian Gibbons said during a prior interview with the Sunnyside Sun.
The consensus agreement between Astria, Lapis and other stakeholders came together quickly to locate a long term partner and strike the deal with MultiCare, helping to fortify the organization’s financial standing.
Astria Health, now comprised of Sunnyside Hospital, a 38-bed facility and the 63-bed Toppenish Hospital, has obtained long term exit financing in accordance with the bankruptcy plan.
“We believe this relationship will strengthen our service offerings and enhance our presence in the Yakima Valley,” Gibbons said from the statement issued by Lapis Advisers on Friday.