Why the Steward Health Bankruptcy Filing May Be a Good Thing for Medical Properties Trust in the Long Run

It was news that many Medical Properties Trust (NYSE: MPW) investors may have been expecting: Steward Health is filing for bankruptcy protection. That development broke last week, but for years now, Steward Health has been one of the most concerning tenants in the real estate investment trust's portfolio. Things are finally coming to a head for Medical Properties Trust (MPT), and that might be a good thing for both the company and its investors.At more than $9 billion in liabilities, including almost $1 billion in unpaid bills plus another $290 million that it owes in employee wages and benefits, Steward Health is deep financial trouble. Investors have long suspected this to be the case because MPT has been working with the company on an ongoing basis to strengthen its financials. The latest financial support MPT has offered to Steward is a $75 million bankruptcy loan.Steward is going to attempt to sell all of the 31 hospitals it has in the country, with the goal being to get deals done within the next few months. MPT CEO Edward K. Aldag, Jr. is optimistic the process will be a smooth one: "Regarding Steward's recent filing for Chapter 11 bankruptcy, we expect this process may facilitate an orderly transition of Steward's operations to new operators."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Zum vollständigen Artikel