CULVER CITY, Calif., Oct. 26 /PRNewswire/ -- Brotman Medical Center, a privately held, 420-bed medical center serving the West Los Angeles area, announced today that it has filed a voluntary Chapter 11 petition in the United States Bankruptcy Court for the Central District of California in Los Angeles.
In connection with the filing, Brotman Medical Center is in the process of finalizing a new debtor-in-possession (DIP) revolver in the amount of approximately $19.6 million to be provided by its pre-petition secured lender, which is subject to final agreement and Court approval. The DIP financing facility is designed to permit the hospital to fund its working capital needs during the Chapter 11 case, including obligations to its employees, trade vendors, suppliers and service providers. As part of the Chapter 11 filing, the hospital is also seeking Court approval of certain operating, cash management and employee motions, which are commonplace in Chapter 11 filings.
Brotman Medical Center affirmed it will continue to serve physicians and their patients in Culver City, West Los Angeles and the surrounding community. The hospital anticipates no changes in emergency room operations. All professional and technical staff will continue to work regular shifts and hours.
In connection with the filing, the hospital has retained Michael Lane of Navigant Consulting, Inc. as its interim Chief Executive Officer (CEO). Lane has worked with Brotman in a consulting capacity for the past year.
Lane affirmed that "the new DIP financing, upon approval by the Court, will ensure that Brotman Medical Center has the resources to continue providing care in Culver City and West Los Angeles. The hospital's suppliers, employees and physician partners should see little or no disruption.
"We have been working to meet the many challenges that characterize today's health care environment. We are refining services in order to continue critical care facilities, seeking maximum cost-efficiencies, and finding new ways to make doctors and nurses more successful while maintaining the level of health care our patients and the community have come to expect. However, the level of the hospital's debt and the need to address operational issues necessitated that we complete our restructuring work under the protection of Chapter 11. Under Chapter 11, we will continue to operate the hospital, respond to patients' needs, and obtain necessary supplies and equipment while we pursue a viable foundation to support Brotman Medical Center," continued Lane.
Brotman is being represented in the Chapter 11 case by its bankruptcy counsel, Klee, Tuchin, Bogdanoff & Stern.
Since 1924, Brotman Medical Center has dedicated itself to providing quality care to the Culver City and West Los Angeles communities. Now at 420 beds, Brotman offers a wide range of inpatient and outpatient services as well as rehabilitation, psychiatric care and chemical dependency. Brotman also offers a 24-hour emergency room staffed by board certified emergency physicians and nurse specialists. The hospital employs approximately 800 full and part-time people at its facilities in Culver City.
|SOURCE Brotman Medical Center|
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