A bankruptcy court has approved a New Hampshire health system's plan to wind down and partially pay back creditors, Bloomberg Law reported Nov. 2.
Laconia, N.H.-based LRGHealthcare and its two hospitals entered Chapter 11 bankruptcy in October 2020. At that time, the hospital group carried a debt load of more than $100 million, and leadership said filing for bankruptcy was necessary to secure a partner. Concord (N.H.) Hospital acquired the healthcare facilities out of bankruptcy earlier this year.
Under a recently approved Chapter 11 plan, LRGHealthcare, winding down under the name HGRL, will create a liquidating trust and distribute proceeds from the $30 million sale of its hospitals to unsecured creditors, according to Bloomberg Law.
LRGHealthcare and two other hospitals have filed for bankruptcy since October 2020. In February, Mercy Hospital & Medical Center in Chicago entered Chapter 11 bankruptcy. Heights Hospitals in Houston filed for Chapter 11 bankruptcy in June.