Prospect Medical Seeks $55 Million More to Finance Bankruptcy

Prospect Medical Holdings Inc. needs $55 million in additional bankruptcy financing to consummate sales of its hospital operations and pursue an orderly winddown in Chapter 11, the company said.

Seeking to take on additional debt for the third time in bankruptcy, Los Angeles-based Prospect urged the US Bankruptcy Court for the Northern District of Texas to approve an amended lending facility from JMB Capital Partners to buoy the company through the end of October and “provide a pathway to confirmation of a Chapter 11 plan.”

Prospect has needed more time than it expected when it filed for bankruptcy in January ...