Saint Vincent Catholic Medical Centers gets final approval of $35 million DIP from Commerce

By Caroline Salls

Pittsburgh, Nov. 7 - Saint Vincent Catholic Medical Centers obtained final court approval for an up to $35 million debtor-in-possession revolving credit facility from Commerce Bank, NA, which will include assumption of pre-bankruptcy loans owing to Commerce, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

In all, $16 million of the DIP will be new funds to be used for overall liquidity and to offset potential near-term cash flow problems. The balance will be the assumption of pre-bankruptcy debt.

According to the motion, Saint Vincent owes Commerce $19.1 million under the pre-bankruptcy loan.

Interest is Prime rate plus 100 basis points.

Borrowings are limited to 70% of the 2005 and 2006 pool loans to be paid to Saint Vincent under its pre-bankruptcy credit agreement with Commerce.

Saint Vincent Catholic Medical Centers filed for bankruptcy on July 5. The New York metropolitan area health care system's Chapter 11 case number is 05-14945.

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