Saint Vincent Medical Centers: court extends DIP loan to June 30

By Lisa Kerner

Charlotte, N.C., Feb. 24 - Saint Vincent Catholic Medical Centers' debtor-in-possession credit agreement was extended to June 30 from Jan. 28, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, 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 than the pre-bankruptcy debt.

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.

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.

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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