Hospital chain Steward Health Care, a tenant of publicly traded Medical Properties Trust, said it's filing for bankruptcy protection.
Steward, the largest U.S. physician-owned system, said it's finalizing the terms of debtor-in-possession financing from Medical Properties Trust for initial funding of $75 million and up to an additional $225 million upon the satisfaction of certain conditions acceptable to Medical Properties Trust.
Medical Properties Trust (MPW) sunk 10% in premarket trade.
The concern over Steward's situation and its difficulty in paying rent has dogged the company, whose stock is down 52% from its July highs but is up 67% from its January lows.
The Wall Street Journal reported that one Steward hospital in Florida became infested with bats, and garbage collectors cut off another in the state over unpaid bills. Steward operates 30 hospitals in eight states.
Medical Properties Trust is due to report first-quarter results on Thursday.
