The hospital district and a group of banks have struck a deal that is expected to allow for a settlement in bankruptcy court and move forward a sale to TJ Samson.
The district board held a special called meeting Thursday that finalized with a vote to pay banks $8,887,500.
The agreement would settle two bank notes in full. Gold said the debt will be paid with a combination of revenue from a sale and future tax revenue.
CEO Neal Gold said attorneys would now draft a modification to the district’s plan of adjustment that will be submitted to the court. Creditors will then vote on the modified plan, Gold said.
“We have successfully completed the mediation and come to an agreement with the banks, and this gives us great optimism that we are going to end up with an approved plan of adjustment for the bankruptcy,” Gold said.
Gold said creditors are allowed time to vote on a plan once it is submitted so they may not make the scheduled Dec. 18 deadline for confirmation. He expects them to still hold a hearing in court that day and believes confirmation will not be far away.
“I’m sure it will be soon. It will be very soon,” he said.
The schedule calls for TJ taking ownership of Westlake Regional Hospital and the district’s numerous primary care centers in January 2016.