April 28, 2024
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St. Margaret’s owes $27 million to Spring Valley City Bank

St. Margaret’s recently filed for Chapter 11 bankruptcy

By Tom Collins
Pizzas lay on the hood of a car while St. Margaret's employees gather outside St. Margarets's Hospital for a gathering on Friday, June 16, 2023 in Spring Valley.

St. Margaret’s Health owes Spring Valley City Bank nearly $27 million, according to a recent filing in U.S. Bankruptcy Court for the Northern District of Illinois. (Scott Anderson)

St. Margaret’s Health owes Spring Valley City Bank nearly $27 million, according to a recent filing in U.S. Bankruptcy Court for the Northern District of Illinois.

As previously reported, St. Margaret’s Health filed for Chapter 11 bankruptcy protection – the petition governs both the Spring Valley and Peru hospitals – on Aug. 31 and, at that time, projected liabilities up to $50 million. A complete picture of St. Margaret’s obligations was not immediately presented to the court.

Since then, additional pleadings have been filed including this entry dated Sept. 5.

“Based upon the sales of the SVCB collateral to date, coupled with the estimated net sales proceeds that SVCB will receive from the OSF Sale, the debtors believe that the balance owing to SVCB as of the filing of the Chapter 11 Cases was almost $26,781,000 (the “Current SVCB Loan Balance”).”