Brotman Medical Center (Brotman) in Los Angeles announced that it officially exited from Chapter 11 Bankruptcy Protection earlier this week as part of a broad restructuring over the last 18 months. The 420-bed acute care hospital that offers a wide range of inpatient and outpatient acute care services located in Culver City, California, also announced that the Los Angeles-based Jewish Home for the Aging (“JHA”) provided an aggregate of approximately $23.0 million in financing through a $16.0 million loan with a two-year term and a $6.25 million loan with a three-year term. The entire financing is secured by real estate and personal property. The interest rate on the $16.0 million loan is 10.0% per annum during the first year of the loan and 7.5% thereafter. Under the $6.25 million loan, the interest rate is 10% per annum during the life of the loan. The proceeds of the JHA loans were used to repay all existing senior secured loans at Brotman, including Debtor-In-Possession financing.
As part of the JHA financing, Brotman has granted JHA an option to purchase, for cancellation of $16 million of debt, certain Brotman-owned land adjacent to the hospital, where JHA plans to construct a senior living facility. Founded in 1912, the JHA is the largest single-source provider of senior housing in Los Angeles and serves over 1,700 seniors in two village campuses covering 16 acres that contains independent-living "Neighborhood Home" accommodations, residential care, skilled nursing care, Alzheimer’s disease and dementia care, and end-of-life care.
