Catholic Health in Buffalo, N.Y. reached an agreement that will buy it time to meet requirements of its nearly $44 million loan, Buffalo Business First reported May 22.
Catholic Health entered a forbearance agreement earlier in May after it failed to get a long-term debt service coverage ratio of at least 1.0 in the last two years, the report said. This led to an "event of default" on bonds. Coming to a forbearance agreement prevents lenders from pursuing penalties against the health system as long as it meets new terms on deadline.
Catholic Health will have until June 30, 2024 to meet its requirements as long as it provides lenders with copies of reports and access to investor calls.
In 2022, the health system ended the year with $175 million in operating losses. However, it reported improvements toward the end of the year, leading to revenue increases.