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Healthcare

Forest Park Medical Center Southlake Files For Chapter 11 Bankruptcy

Forest Park Medical Center’s Southlake facility has filed for Chapter 11 protection, making it the last of the beleaguered chain’s properties to file for bankruptcy or shutter.
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Forest Park Medical Center’s Southlake facility has filed for Chapter 11 protection, making it the last of the beleaguered chain’s properties to file for bankruptcy or shutter.

The managers filed for bankruptcy on Tuesday and owe somewhere between $10 million and $50 million to at least 200 different creditors. Its largest unsecured creditor is to American Healthcare Investors, Inc., a subsidiary of the building’s owner, Griffin North American Health Care REIT. The hospital owes more than $11.7 million in unpaid rent.

Southlake’s problems were never as visible as the luxury chain’s other locations. Griffin American Healthcare REIT, which owns the property and serves as landlord, is a private company that doesn’t have to provide investors with updates. There were hints that the hospital was having financial problems. In November, a Missouri bank sued in federal court alleging that its managers defaulted on an equipment loan and owe $3.4 million to cover the balance. That lender is not among the 20 largest unsecured creditors in the filing.

Earlier this month, Forest Park’s Fort Worth hospital filed for Chapter 11 bankruptcy. Its facilities in Dallas and San Antonio are closed, and one in Austin never opened. Frisco is also operating despite its Chapter 11 filing.

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