Allegheny Hlth Ed Files Chapt 11, Still on S&PWatch.NEW YORK--(BUSINESS WIRE)--July 22, 1998--Standard & Poor's CreditWire 7/22/98--Standard & Poor's ratings on Allegheny Health Education and Research Foundation and its rated subsidiaries (see list below) remain on CreditWatch with negative implications, where they were placed June 29, 1998. Allegheny Health Education and Research Foundation (AHERF AHERF Allegheny Health Education and Research Foundation ) recently announced it will seek bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. protection for some of its health care facilities and sell all of its Philadelphia, Pa. area hospitals. AHERF filed for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most protection on July 21, 1998. Prior to AHERF's filing for bankruptcy to sell some of its hospitals, the ratings were lowered to their current levels on July 17, 1998. Standard & Poor's will take no further rating actions at this time. Currently, all debt service payments have been made. Standard & Poor's will continue to monitor the pending bankruptcy proceeding and sale of the hospitals. On July 20, 1998, AHERF announced plans to seek bankruptcy court protection for AHERF and four of its subsidies under Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. . AHERF also announced an agreement, in principle, to sell all of its Philadelphia hospitals to Vanguard Health Systems Vanguard Health Systems is an operator of hospitals and other medical facilities in four U.S. states: Arizona, Illinois, Massachusetts, and Texas.[1] The company's headquarters are located in Nashville, Tennessee. Inc. In the Pittsburgh region, the filing covers the parent organization, AHERF, and Allegheny University Medical Practices, which include all of the owned medical practices in the Pittsburgh and Philadelphia areas. In the Philadelphia region, the filing covers the following AHERF subsidiaries: -- Allegheny University Hospitals East which includes Allegheny Bucks County, Allegheny Elkins Park, Allegheny Hahnemann, Allegheny MCP (1) See Microsoft certification. (2) (MultiChip Package) A chip package that contains two or more chips. It is essentially a multichip module (MCM) that uses a laminated, printed-circuit-board-like substrate (MCM-L) rather than ceramic (MCM-C). , and St. Christopher's Hospital for Children St. Christopher's Hospital for Children is a non-sectarian 161 bed children's hospital located in Philadelphia. It's Physicians serve as the pediatrics department at the Drexel University College of Medicine. St. ; -- Allegheny University Hospitals Centennial, which includes, Allegheny City Avenue, Allegheny Graduate, Allegheny Parkview; and -- Allegheny University of Health Sciences which includes the MCP Hahnemann School of Medicine, School of Health Professionals, School of Nursing and School of Public Health. The Pittsburgh, Pa.-based Allegheny University Hospitals West, which includes Allegheny General Hospital Allegheny General Hospital is a large urban hospital located in Pittsburgh, Pennsylvania, USA. Allegheny General Hospital, also commonly known locally by the acronym "AGH," was founded in 1885 in Pittsburgh's North Side, in the area formally known as Allegheny City. , Canonsburg Hospital, Allegheny Valley Hospital, and the Forbes Health System, will not be included in the filing. Allegheny Rancocas in New Jersey is also excluded from the filing. AHERF and Vanguard Vanguard Any of three unmanned U.S. experimental satellites. Vanguard I (1958), the second U.S. satellite placed in orbit around Earth (after Explorer 1), was a tiny 3.25-lb (1.47-kg) sphere with two radio transmitters. announced that they will enter into a definitive contract, within one week, for the purchase by Vanguard of all nine hospitals of all Allegheny University Hospitals East -- Allegheny Hahnemann, Allegheny MCP, St. Christopher's Hospital for Children, Allegheny Graduate, Allegheny City Avenue, Allegheny Parkview, which serve all of Philadelphia; as well as Allegheny Bucks County of Warminister, Pa., Allegheny Elkins Park of Elkins Park Pa., and Allegheny Rancocas of Willingboro, N.J. For additional information about the downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. of AHERF's rated subsidiaries, see Standard & Poor's July 17,1998 press release. -- CreditWire. -0-
OUTSTANDING RATINGS REMAINING ON CREDITWATCH WITH NEGATIVE
IMPLICATIONS
Rating
To From
Issuer/Obligor
Pennsylvania Higher Ed Fac Auth/Allegheny General
Hospital
-- $54.2 mil health care revenue bonds ser 1991A B A
Allegheny County Hospital Dev Auth,PA/Allegheny Valley Hospital
$43 mil health care revenue bonds
(Allegheny Valley Hosp
sublessee) ser 1982, 1986, 1990 B A-
New Jersey Health Care Fac Finance Auth/Allegheny
Hospital(a)
-- $41.0 mil refunding revenue bonds ser C CCC BB-
Philadelphia Hospital & Higher Ed Fac Auth/Graduate
Health System Obligated Group
-- Health care revenue bonds CCC BB
Monroeville Hospital Authority/Forbes Health System
-- $78.3 mil health care revenue bonds B A-
Pittsburgh Urban Redevelopment Auth, Pa./
Allegheny Gen Hosp
-- $6.65 mil taxable redevelopment bonds
(Federal North Tax
Increment Financing District) ser 1998 B- A-
(a) Formerly known as Zurbrugg Memorial Hospital.
CONTACT: John Fargnoli, New York, 212/208-1826
Martin D Arrick, New York, 212/208-1899
David P Peknay, New York, 212/208-1795
For more information on criteria or subscriptions:
http://www.ratings.standardpoor.com
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