Northern Berkshire Healthcare Inc., unable to restructure $43 million in secured bond debt, has filed for Chapter 11 bankruptcy protection.
In its June 13 filing in the U.S. Bankruptcy Court for the District of Massachusetts in Springfield, the North Adams, Mass.-based health care provider listed bondholders U.S. Bank ($29.7 million) and Bank of New York Mellon Trust Co. ($13.6 million) among its largest creditors.
NBH chief financial officer Christopher Hickey said in court papers that the debt relates to the expansion of North Adams Regional Hospital, of which Northern Berkshire Healthcare is parent. The company had been negotiating with bondholders on a restructuring since September. State agencies, serving as conduits, had issued the bonds so their status could be tax-exempt.
Some of the debt is tied to its former ownership of the Sweet Brook nursing home and assisted-living facility, both in Williamstown. NBH sold both properties in August, but still retains $13 million in debt.
Ropes & Gray LLP is debtor counsel. Henry Boroff is the presiding judge.
