PINNACLE REGIONAL: May Use Cash Collateral Until May 31

Subscribe or sign up for a free trial.

Judge Dale Somers of the U.S. Bankruptcy Court for the District of Kansas authorized James Overcash, the Chapter 11 trustee for Pinnacle Regional Hospital, Inc. and its affiliates to spend cash collateral only for the purposes and in the amounts set forth in the budget and pursuant to the terms of the Interim Order.

The Debtor may use cash collateral until the earlier of (a) the entry of a final order granting the Motion after completion of the Final Hearing; (b) May 31, 2020; or (c) breach of any provision contained in the Interim Order.

Great Western Bank asserts various interests in (including, without limitation, security interests in and liens upon) personal property including, without limitation, inventory, accounts receivable, general intangibles, and other collateral in the name of the Health Care Debtors — Pinnacle Regional Hospital Inc., Pinnacle Boonville, Blue Valley Surgical Associates LLC, and Pinnacle Health Care System.

Great Western Bank is granted a valid and duly perfected first priority security interest in and lien on and against all property of the Debtor using the cash collateral and collateral in question and of the relevant estate wherever located and any proceeds therefrom, whether presently owned or hereafter acquired to the extent that the Bank holds a valid and perfected, senior and unavoidable security interest in and lien on the collateral and the cash collateral.

To the extent the replacement liens prove inadequate to protect the Bank from a demonstrated diminution in the value of the Bank’s collateral position from the Petition Date as a result of the use of the Bank’s collateral hereunder, the Bank will be granted an administrative expense claim against the relevant Debtor’s estate under section 503(b) of the Bankruptcy Code with priority in payment under section 507(b) of the Bankruptcy Code.

About Pinnacle Regional Hospital

Pinnacle Regional Hospital, Inc. is an operator of general acute-care hospitals in Overland Park, Kansas.

Pinnacle Regional Hospital and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Lead Case No. 20-20219) on Feb. 12, 2020. The affiliates are Pinnacle Regional Hospital LLC, Pinnacle Healthcare System Inc., Blue Valley Surgical Associates, Rojana Realty Investments Inc. and Joys’ Majestic Paradise, Inc.

At the time of the filing, Pinnacle Regional Hospital disclosed assets of between $10 million and $50 million and liabilities of the same range.

McDowell, Rice, Smith & Buchanan, PC is Debtors’ legal counsel.

The Office of the U.S. Trustee appointed a committee of unsecured creditors on March 31, 2020. The committee is represented by Kilpatrick Townsend & Stockton, LLC.

On March 31, 2020, James A. Overcash, Esq., at Woods Aitken LLP, was appointed as Chapter 11 trustee. The Trustee is represented by Stinson LLP and Woods Aitken LLP.

Leave a Reply

Your email address will not be published. Required fields are marked *