University Medical Center of El Paso (Texas) board members have approved a debt repayment plan for El Paso Children's Hospital, which filed for bankruptcy in May 2015.
UMC is El Paso Children's largest creditor and has a lien on the bankrupt hospital. In late 2015, a federal bankruptcy judge approved a reorganization plan between UMC and El Paso Children's that allows the pediatric hospital to emerge from bankruptcy with UMC as its "sole corporate member." As of December, the pediatric hospital owed UMC about $48 million, according to the El Paso Times.
In addition to a debt repayment plan, the agreement approved Monday amends El Paso Children's bylaws.
UMC officials wouldn't release details of the agreement, but a hospital spokesman told the El Paso Times, "It strengthens relationships between the two hospitals and makes Children's more viable."
The El Paso Children's board must approve the agreement, and the bankruptcy court must review some provisions.
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