SUNNYSIDE — To end the Chapter 11 bankruptcy Astria Health entered in 2019, Interim President and CEO for Astria Health Brian Gibbons has announced there are two plans in place to move forward and exit by Jan. 16, 2021.
Gibbons stated through correspondence with Astria Health’s Marketing and Communications Coordinator Ashleigh Oswalt, there is a Plan A and a Plan B put in place. “Plan A is the original Plan of Reorganization set into place, where Astria Health in conjunction with our secured lender Lapis Advisors submitted a joint Plan of Reorganization.”
He explained Plan B is an amendment to the Plan of Reorganization, simultaneously moving forward with Plan A, wherein MultiCare Health System has agreed to lend $75 million to Astria Health to replace Lapis Advisers, the current secured lender, by Jan. 15, 2021.
The Amended Exit Plan was approved and confirmed by Judge Whitman L. Holt in the confirmation hearing held at 12 p.m. on Dec. 23.
When the confirmation of the Amended Exit Plan was approved, Gibbons stated, “Over the last month and a half now that I have been in this role, I am proud to say Astria Health is in the final stages of its exit from Chapter 11 Bankruptcy, soon to emerge in the first of the year.”
The interim CEO and President stepped into the role in early November after his predecessor, John Gallagher, resigned on Nov. 3.
Gibbons conveyed, “This result would not have been possible without the dedication and hard work of many team members, of which I am truly grateful for.”
He added the deal will be closed by Jan. 16 or sooner, whether Plan A or Plan B is the plan completes the bankruptcy closure.
The recent sale of two Astria Health buildings in Yakima garnered the company $20 million which reduced the outstanding secured debt and, according to Gibbons, enabled the company “to more easily and rapidly exit Chapter 11.”
When asked if Astria Health had planned on selling more buildings to reduce further debt, the CEO expressed, “There are no plans to sell any Astria Health Centers at this time.”