A New York-based hedge fund has purchased $212.7 million in outstanding loans of Lewisville-based Adeptus Health, the nation’s largest operator of freestanding emergency rooms. The fund, Deerfield Management, is also expected to provide additional financing and operational support during Adeptus Health’s anticipated Chapter 11 bankruptcy.
Deerfield, a healthcare-only investment firm with $8 billion under management, currently owns 10 percent of Adeptus’ shares. It has said it plans to obtain full control of the company and intends to provide short-term capital and extend debtor-in-possession financing through the bankruptcy procedure. The process will include a court-supervised restructuring, according to a Securities and Exchange Commission filing.
In addition to acquiring Adeptus’ debt, Deerfield will provide pre-bankruptcy payments to Medical Properties Trust Inc., a Birmingham, Ala.-based real estate investment trust that owns facilities Adeptus leases. Medical Properties Trust said several Adeptus facilities in Texas will be sold or re-leased to new operators by the fourth quarter of 2018. Until then, Adeptus will continue to pay contractual rent.
Adeptus, which operates more than 90 ER facilities in five states, told D CEO Healthcare it would have no comment beyond the SEC filing.