Vanguard Healthcare granted approval to use $500,000 of unsecured loan

By Caroline Salls

Pittsburgh, April 6 – Vanguard Healthcare, LLC received court approval to obtain $500,000 of a requested $2 million unsecured loan, according to an order filed Thursday with the U.S. Bankruptcy Court for the Middle District of Tennessee.

The company said its operations require additional capital as it seeks confirmation of its first amended joint plan of reorganization.

As a result, Vanguard Healthcare said it was prepared to execute a convertible promissory note in favor of Hisashi Yokoi to obtain working capital for its ongoing operations and the payment of administrative expenses that will be due on the plan effective date.

Interest on the note will accrue at a fixed rate of 7%.

If the loan is closed in this reduced amount, Vanguard Healthcare was authorized under the court order to make all payments due under the note during this Chapter 11 case.

The rights of Yokoi as maker of the note will be subordinated to all of the debt owed to Healthcare Financial Solutions by Vanguard.

In addition, Vanguard Healthcare was granted approval to incur and pay from the proceeds derived from the note the fees payable to Yuichi Inagaki in the amount equal to 3% of the authorized amount of the loan, which payment can be made at the funding of the loan.

The order does not allow Vanguard Healthcare to pay Seiji Suzuki any fees in connection with this loan.

Vanguard is a Brentwood, Tenn., long-term care provider. The company filed bankruptcy on May 6, 2016 under Chapter 11 case number 16-03296.

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