Summary by Moomoo AI
Medical Properties Trust Inc. (MPT) has reached an interim global settlement approved by the Bankruptcy Court on September 11, 2024, involving the termination of Master Lease I with Steward Health Care System LLC, which filed for Chapter 11 bankruptcy on May 6, 2024. The settlement includes the transition of management for 15 hospitals to new interim managers, with the expectation of permanent transfers by October 1, 2024. MPT will provide up to $80 million in loans to the new operators, secured by accounts receivable. The agreement also outlines the transfer of operations for certain Steward facilities to MPT and the sale of others, with final approval pending from the Bankruptcy Court on September 17, 2024. MPT has recorded significant impairment charges in 2023 and 2024 due to Steward's bankruptcy and expects additional impairments in the 2024 third quarter. The Company has moved to the cash basis of accounting for its leases and loans with Steward as of December 31, 2023.
