TM Healthcare’s motion to use KeyBank’s cash collateral denied

By Sarah Lizee

Olympia, Wash., March 16 – TM Healthcare Holdings, LLC’s emergency motion to use the cash collateral of pre-bankruptcy secured lender KeyBank NA was denied, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Florida.

As previously reported, the company said that KeyBank notified the debtors that it would not consent to the debtors’ use of cash collateral after March 17.

However, the debtors’ management had said it needs continued use of cash collateral through April 1 in order to properly discharge all patients and fully wind down without substantial harm to the patients.

The company was seeking court approval to use the cash collateral through April 1 without the lender’s consent.

In a reply to the debtors’ emergency motion, KeyBank asked the court to deny the cash collateral use because the secured lenders are not adequately protected.

In addition, KeyBank said the debtors’ patients will not be harmed by a transfer to similar facilities that can offer the full range of services and support as they continue their treatment.

As the motion has been denied, the debtor will need to make arrangements to transfer patients prior to the March 17 expiration of cash collateral.

Stuart, Fla.-based TM operates treatment centers for the treatment of alcohol and drug addiction. The company filed Chapter 11 bankruptcy on Sept. 17, 2020 under case number 20-20024.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.