Astria Health seeks exclusivity extension, explores potential sale

By Caroline Salls

Pittsburgh, Nov. 5 – Astria Health is seeking an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the Eastern District of Washington.

The company is asking the court to extend its exclusive plan-filing period to Jan. 3 from Nov. 4 and the solicitation period to March 31 from Jan. 31.

Astria said in the motion that it has been working to obtain exit financing sufficient to support a consensual plan of reorganization for at least some, if not all, of its three acute care hospitals.

However, to better ensure a positive outcome for stakeholders, Astria said its investment banker’s duties have been expanded to include marketing for the potential sale of some or all of the company’s assets.

The company said the proposed exclusivity extension is “narrowly tailored to run in parallel with the IB’s refinancing and sale efforts.”

Astria Health is a Yakima, Wash., health care facility operator. The company filed bankruptcy on May 6, 2019 under Chapter 11 case number 19-01189.

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