Astria Health wins further interim approval of replacement financing

By Caroline Salls

Pittsburgh, Feb. 5 – Astria Health received further interim court approval to obtain a replacement debtor-in-possession facility, according to a second interim order filed Tuesday with the U.S. Bankruptcy Court for the Eastern District of Washington.

The final hearing is scheduled for March 18.

Astria said entry into the replacement financing agreement will allow it to avoid payment of an 8%, or $3.02 million, stated maturity date fee on the original DIP loan. The original $37.8 million DIP facility was scheduled to mature on Dec. 31.

The replacement facility includes up to $40.8 million in committed advances, with initial funding of $37.8 million to pay off the original facility, as well as up to $2.5 million in discretionary additional advances.

The agent for the replacement facility is Lapis Advisers, LP.

According to the motion, the replacement facility allows Astria to borrow additional amounts to fund up to $5 million in operational expenses and is scheduled to mature on June 30. The company said it believes this should be enough time to allow it to obtain exit financing and/or sell assets and otherwise exit bankruptcy under a Chapter 11 plan.

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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