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Steward Healthcare, the private hospital operator that filed for bankruptcy in May, announced a settlement Friday with Medical Properties Trust (NYSE: MPW), also known as MPT, to settle disputes over rental claims.
According to the agreement, Medical Properties Trust (MPW)Steward, the largest hospital owner in the United States, will operate Steward Hospitals under its master lease and fund all related operating expenses.
After the sale of these hospitals, the parties agreed to make payments to lenders and creditors from the proceeds of the transactions.
The agreement, which is subject to bankruptcy court approval, is expected to resolve disputes between MPT and Steward over lease obligations.
With a hearing likely on Sept. 10, Steward, MPT’s largest tenant, said he will seek bankruptcy The court approved the deal “as soon as possible.”
The company announced Thursday an agreement to sell six of its hospitals in Massachusetts.