Tuomey Healthcare System forbearance agreement extended to Jan. 31

By Caroline Salls

Pittsburgh, Sept. 29 – Tuomey Healthcare System entered into an amended and restated forbearance agreement with bond insurers CIFG Assurance North America, Inc. and Ambac Assurance Corp. that extends the forbearance period to Jan. 31, 2016 from Sept. 2, according to a notice released Tuesday.

As previously reported, the forbearance agreement was entered in March 2015 in connection with defaults on Tuomey’s South Carolina Jobs – Economic Development Authority hospital revenue bonds.

Tuomey agreed to make deposits into the bond principal and interest accounts held to pre-fund on a monthly basis the annual debt service due on its series 1998 and series 2006 bonds.

Under the forbearance agreement, Tuomey must also seek an affiliation transaction with Palmetto Health or another company with a bona fide interest in affiliating with the company.

Tuomey issued $74.51 million of the series 2006 bonds and $25 million of the series 1998 bonds.

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