Lang
7/24/23
An investor in Mercy Iowa City has asked a judge to put the hospital on a court-appointed receivership after it reportedly defaulted on its bond agreement.
That’s according to a news release issued by Preston Hollow Community Capital on Monday. The company describes itself as providing “financing for projects of significant social and economic value to local communities across the United States”. One such project is Mercy Iowa City, in which the company invested $41.8 million in 2018.
In Monday’s statement, Preston Hollow blames Mercy’s board of directors for making a series of decisions that have put the hospital’s mission at risk. The company says Mercy’s bondholders have reported the hospital has defaulted on its bond agreement. Mercy officials deny the allegations, saying they have met all of their financial obligations.
Preston Hollow says the Mercy board of directors has put the hospital on the verge of insolvency, and it has asked a judge to place the facility into a court-appointed receivership to help stave off future financial losses. The company has suggested the receiver be Peter Chadwick of Berkeley Research Group.
Mercy’s credit rating was downgraded last March after it had outstanding debt at the end of the last budget year.