Petersen Health Care will be allowed to tap into a line of credit of up to $45 million as the company's bankruptcy case proceeds through court.
U.S. Bankruptcy Court Judge Thomas Horan agreed with the company that the money is needed to keep Petersen's nursing homes operational and minimize disruptions to residents, vendors, and employees as the complicated case winds its way through the judicial process.
Petersen will be allowed to put up cash collateral to obtain the financing. The loan comes at a hefty 12% interest rate.
The Peoria-based company ultimately plans to sell off its assets to pay off its roughly $295 million debt. Petersen Health Care runs around 100 nursing homes in Illinois, Iowa, and Missouri.
