After defaulting on $60 million in debt to its bondholders last month , Montgomery’s Jackson Hospital has now addressed its next steps in restructuring to handle the new financial situation they find themselves in.
Jackson Hospital, a historic private hospital with deep history in the Montgomery area, saw its S&P Global Ratings credit rating lower to a “D” the next day after the missed payment on Sept. 3, indicating default on a financial obligation. The previous rating of “CC” indicated high vulnerability to default. Jackson Hospital’s rating was also removed from CreditWatch. S&P confirmed that most of the hospital’s long-term debt consists of money owed on 2015 bonds.
The hospital’s bondholders posted an acceleration notice on Aug. 9, demanding full repayment, and S&P said they are aware that Jackson Hospital’s liquidity was “very thin and insufficient” to meet this request.
New restructuring officer
According to Edward F. Crowell, chairman of Jackson Hospital & Clinic’s board of directors, with bondholder support, the hospital has introduced Allen Wilen as chief restructuring officer, who has “extensive experience working with hospitals and healthcare organizations facing financial or operational issues,” joined by Ronald Dreskin.