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Medical Properties Trust (NYSE:MPW) edged down almost 1% in after-hours trading a report that the REIT's largest tenant, Steward Health Care System, hired restructuring advisers.
Steward has engaged law firm Weil Gotshal & Manges and turnaround consulting firm AlixPartners to evaluate options for its business, according to a WSJ report on Thursday, which cited people familiar with the matter.
Medical Properties Trust (MPW) plunged 29% on Jan. 5 after the REIT said it had taken steps to recover uncollected rents from troubled tenant Steward Health Care System. MPW is trying to reduce its exposure to Steward, which recently told MPW that its liquidity has been adversely impacted by significant changes to vendors’ payment terms.
In a bid to improve its liquidity and restore its balance sheet, Steward is pursuing several strategic transactions, including the potential sale or re-tenanting of certain hospital operations as well as the divestiture of non-core operations.
Medical Properties Trust (MPW) short interest is 26%.
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