DOWNEY RISKS CITY LAND TRYING TO SAVE THE MEDICAL CENTER ON IT
By Ben Baeder
DOWNEY—Taking a risk to rescue a medical facility with deep local roots, the City of Downey is putting up its stake in the Downey Regional Medical Center as collateral to help the bankrupt hospital get financing.
Downey owns the hospital at 11500 Brookshire Ave. and leases it to an operating company. That company, Downey Regional Medical Center Inc., filed for bankruptcy in 2009. The property had lost more than $100 million in the years leading up to the bankruptcy, according to an article in the Los Angeles Times.
A pair of companies, Midcap Financial LLC and RCB Equities #1 LLC, have agreed to provide financing for the hospital, according to just-released documents, but the City would lose the hospital if lenders foreclosed on Downey Regional Medical Center, Inc.
