Redeemer Health Defaults on $87 Million Municipal Bond Payment

Pennsylvania-based Redeemer Health has defaulted on required payments for publicly traded, tax-exempt municipal bonds, according to an Oct. 8 notice filed through the Electronic Municipal Market Access system. The outstanding principal is roughly $87 million, with payments due Sept. 1 and Oct. 1 going unmet. A system spokesperson said the default was anticipated as leadership works with financial advisors and counsel on a broader reorganization to ensure viability. The default follows recent leadership turnover, including a new interim CEO, the return of a former CFO, and the resignation of the system's CFO effective Sept. 30, as Redeemer works with bondholder representatives and area health systems on next steps.

Finance