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Adeptus Health Bankruptcy Objections Filed

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Multiple parties – including Colorado Springs I Medical Properties & Hilliard Medical Properties, Wexford Capital and Custer Corner – filed with the U.S. Bankruptcy Court separate objections to Adeptus Health’s financing motion.

Colorado Springs I Medical Properties & Hilliard Medical Properties asserts, “The Objecting Landlords hereby object to any proposed final DIP order that seeks authority to grant the DIP Agent or any DIP Lender a lien directly on the Leases, provides the DIP Agent or any DIP Lender with the ability to file leasehold mortgages, or provides any DIP Lender, the DIP Agent, or any representative, appraiser, consultant, or financial advisor of the DIP Agent with access to the leasehold Premises…Finally, if the DIP Agent or the DIP Lenders (or any appraisers, consultants, or advisors retained by the DIP Agent or any DIP Lender(s)) seek to enter onto the Premises, the DIP Agent and/or the DIP Lenders must bear full financial responsibility, not only for all charges arising under the Leases going forward, but also for prior unpaid rent or other charges that arise.”

In addition, “The DIP Agent and/or the DIP Lenders should not, on the one hand, receive a superpriority administrative claim, and on the other hand be relieved from liability for the Debtors’ failure to remain current on postpetition rent obligations while the DIP Lenders attempt to realize upon their collateral. This result compels the Objecting Landlords to continue to suffer as involuntary postpetition creditors, the very result that section 365(d)(3) was intended to counteract.”

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