(RTTNews) - Medical Properties Trust Inc. (MPW) addressed Prospect Medical Group's decision to initiate an in-court restructuring under Chapter 11 of the U.S. Bankruptcy Code.
Medical Properties Trust noted that Prospect has not paid any rent to Medical Properties Trust since June 2024, its Connecticut and Pennsylvania lessees and mortgagors have made only minimal payments over the past two years, and Medical Properties Trust has been recognizing all revenues from Prospect using cash basis accounting since 2023.
Medical Properties Trust noted that its priority during the restructuring process is to protect its investment in Prospect's California hospitals. The company also expects to support efforts by Prospect to use the Chapter 11 process to complete a successful sale of Prospect's Connecticut facilities.
On January 11, Prospect Medical Holdings said it initiated voluntary chapter 11 proceedings in the United States Bankruptcy Court for the Northern District of Texas.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
