Stafford/Enfield - October 26, 2010 - Healthcare Finance Group, LLC (HFG) recently announced it has provided an $8 million line of credit to fund Johnson Memorial Medical Center's (JMMC) exit from Chapter 11 and assist with the organization's capital needs. JMMC was known as Johnson Memorial Corporation for the past 98 years and changed its name to JMMC upon emerging on September 30.
"Emerging from bankruptcy without being sold or merged into another organization is an unusual outcome in the health care industry," said Peter J. Betts, LFACHE, President and Chief Executive Officer of JMMC. "This was an excellent result for the community, local businesses and over 1,000 community members that are part of the JMMC team. We worked diligently with the Medical Staff and Board, making many sacrifices to pull the organization up by its own bootstraps. Now that we have exited Chapter 11, we have exciting plans for the future of health care services in North Central Connecticut and Western Massachusetts."
JMMC filed for Chapter 11 protection in November 2008. Under the reorganization plan, unsecured creditors, including the Pension Benefit Guarantee Corporation, will be paid at least $9.3 million over five years, of which about $1.5 million will be paid immediately.
"HFG's assistance has been significant to our successful completion of the Chapter 11 process. We are pleased that HFG has become our partner during the most important period in JMMC's rich history and has enabled the organization to have a second chance," said Betts.
Regarding the transaction, Claudia Gourdon, Senior Vice President of HFG said "JMMC has been extremely dedicated to working on the successful execution of its strategy to emerge from Chapter 11 as a stronger healthcare organization that will be able to serve its expanding patient base. JMMC's entire team, including its management, staff and Board members, are to be commended for their proven ability to work through difficult issues for the benefit of the overall organization and community, and HFG is pleased to be able to support JMMC and partner with it going forward."
About Healthcare Finance Group
HFG is a specialty lender dedicated exclusively to providing secured debt financing to healthcare companies. HFG strives to custom-tailor its products to meet the specific needs of its clients. HFG is headquartered in New York City and has offices in California, Texas, Florida, New Jersey and Connecticut.