Saint Vincent Medical Centers looks to extend DIP loan to June 30

By Caroline Salls

Pittsburgh, Feb. 3 - Saint Vincent Catholic Medical Centers requested court approval to extend its debtor-in-possession credit agreement to June 30 from Jan. 28, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said it is not required to pay an amendment fee, and the DIP loan interest rate will not be increased under the amendment.

Under the amendment, the net proceeds of assets in which both the pre-bankruptcy lenders and DIP lenders have a security interest must be used to pay down the DIP loan obligations, rather that the pre-bankruptcy debt.

In addition, the maximum permitted loan balance provision was amended to decrease the maximum weekly borrowing under the DIP facility by the amount of the asset sale prepayments.

A hearing is scheduled for Feb. 17.

Saint Vincent, a New York-based health care system, filed for bankruptcy on April 14, 2010. Its Chapter 11 case number is 10-11963.

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