HPA files for Chapter 11 bankruptcy

A year ago, Hospital Partners of America had big plans. The promising young company, which develops and manages hospitals in partnership with physicians, was ranking at No. 3 on Inc. magazine's list of fastest-growing companies in the U.S., and had already leased or acquired seven hospitals.

Unfortunately, the financial markets are savaging the hopes of up-and-comers like these. Charlotte-based HPA has now filed for Chapter 11 bankruptcy protection, and is on the prowl for buyers for its stakes in four hospitals. The filing shouldn't affect its hospitals directly, as they operate as independent legal entities that have not themselves filed for bankruptcy.

HPA owes $43.2 million to Medical Properties trust of Birmingham, AL, and $35 million to Silver Point Capital of Greenwich, CT, which are its two largest unsecured creditors. To help close this debt, it's attempting to sell its stakes in St. Joseph Medical Center in Houston, Trinity Medical Center in Carrollton, TX, Shasta Regional Medical Center in Redding, CA and Austin Surgical Hospital.

Along the way, the company also hired Alvarez & Marsal to provide management and restructuring services during the bankruptcy. Managing director Joseph Bondi with A&M has been appointed CEO and chief restructuring officer.

To learn more about this restructuring:
- read this Modern Healthcare piece (reg. req.)

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