Saint Vincent Catholic Medical Centers requests court OK for $14.46 million in insurance premium loans

By Caroline Salls

Pittsburgh, Jan. 9 - Saint Vincent Catholic Medical Centers requested court approval of $14.46 million in secured financing from A.I. Credit Corp. that will be used to finance insurance premiums, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

A total of $10.68 million will be used to finance premiums due under new policies for St. Vincent's Manhattan and Westchester service regions, and $4.78 million will be used to finance premiums under new policies for its Staten Island service region.

Interest on both loans will be 4.96%. St. Vincent will pay both loans in nine monthly installments, beginning March 1.

St. Vincent will pay a $268,553 finance charge under the Manhattan agreement and $120,238 under the Staten Island agreement.

A hearing is scheduled for Jan. 17.

The New York metropolitan area health care system filed for bankruptcy on July 5. Its Chapter 11 case number is 05-14945.

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