Jewish Home For The Aging Provides Financing For Troubled Hospital In Exchange For Land

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.

Jewish Home

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.