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Steward landlords turn over properties to their lender, advancing sales talks – The Boston Globe

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Steward landlords turn over properties to their lender, advancing sales talks – The Boston Globe


Two landowners that have been seen as roadblocks in long-stalled talks to sell six Steward Health Care hospitals in Massachusetts appear to be walking away from their properties, boosting the chances that hospital sales can be completed by the end of the week.

After multi-party negotiations dragged on through last weekend, attorneys said during a US Bankruptcy Court hearing Tuesday that real estate firm Medical Properties Trust and its partner Macquarie Infrastructure Partners, which jointly owned a long-term lease on the hospital properties, agreed to turn it over to their mortgage lender.

That surprise agreement would effectively remove MPT and Macquarie from the hospital sales talks, leaving lease negotiations with prospective buyers in the hands of New York-based Apollo Global Management, a Wall Street giant that manages assets of nearly $700 billion but is largely invisible to the public in Massachusetts.

With a single negotiator, and all parties motivated to wrap up sales deals by Friday, “significant progress has been made,” Steward’s lawyer, David Cohen, told Houston bankruptcy Judge Christopher Lopez.

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Steward said it has qualified bids from prospective buyers of St. Elizabeth’s Medical Center in Brighton, Holy Family Hospital in Methuen and Haverhill, Good Samaritan Medical Center in Brockton, Morton Hospital in Taunton, and St. Anne’s Hospital in Fall River.

The bankrupt company said it drew no qualified bids for two other hospitals, Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer. The judge last week approved a Steward plan to close both of those acute care hospitals by the end of August.

Hugh McDonald, a lawyer for the Massachusetts Department of Health and Human Services and the state Attorney General’s office agreed “we made a lot progress” over the past week and said state officials expect the sales deals to be wrapped up this week.

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The progress was enough for Governor Maura Healey’s administration to modify a plan to offer about $30 million in bridge funding for the Steward hospitals on the condition that purchase agreements were finalized by Tuesday. Even with the deals unfinished, the administration will advance a first tranche of the funding, $11.3 million, this week.

A second tranche of $18.6 million will be paid on Aug. 16 only if the deals are completed by Friday, according to the modified funding deal. Judge Lopez, who must sign off on any money flowing to Steward during the bankruptcy proceedings, approved the bridge funding Tuesday.

“This payment agreement represents the Commonwealth’s continued commitment to achieving the transition of the six remaining facilities to new operators,” McDonald told the bankruptcy judge.

The new dynamics of the negotiations cast a spotlight on Apollo, a secretive firm that thus far hasn’t commented on its involvement in the Steward bankruptcy case. Other parties say Apollo has taken a leading role for weeks in the talks about lease terms with prospective hospital buyers while also bickering with the landlords, a dynamic described by a Steward attorney last week as an “intra-stakeholder dispute.”

Judge Lopez last week nullified a lease Steward negotiated with the landlords in 2016 requiring the hospitals to pay more than $100 million in annual rents. Even before it filed for bankruptcy on May 6, the cash-strapped hospital systems had stopped paying the rents, curbing the cash flow of the landowners who owed mortgage payments to Apollo.

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The parties didn’t disclose financial terms of the agreement in principal transferring the hospital properties from the landlords to Apollo or whether Apollo planned to retain the properties and collect rents on them or sell the land and buildings to new hospital operators.

Steward, which is selling its hospitals and its doctors group to pay off its scores of creditors, is expected to run out of money from its bankruptcy loans within weeks. The bridge funding can be used only for the hospitals’ operating expenses until they can be sold, not for executive compensation or rental payments, according to the funding terms.

The money is an advance from MassHealth, the state Medicaid program, based on the hospitals’ participation in several quality and equity incentive programs the state sponsors for low-income patients.


Robert Weisman can be reached at robert.weisman@globe.com.

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Snow, ice, rain to impact roads in Massachusetts – Boston News, Weather, Sports | WHDH 7News

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Snow, ice, rain to impact roads in Massachusetts – Boston News, Weather, Sports | WHDH 7News


Happy Tuesday! While today started off dry, we’re already looking at snow out there across the area. While this event will primarily stay as rain on the Cape and islands, it will be an icy mix of snow, ice and rain for the rest of us.

The rain/snow line will continue to advance from the south to the north as the evening progresses. Before the changeover, there will be a quick coating to 2 inches for most of our area.

The threshold between the snow and rain will feature sleet and freezing rain, leading to that icing.

For the rest of the night, there will primarily be rain with continued pockets of freezing rain, leading to increasing spotty ice accretion. Be extremely careful on roads, especially since switching between rain and freezing rain can wash off any road salt.

The rain and freezing rain will exit by 6 a.m. Wednesday, but temperatures will still be close to freezing during the morning commute, so watch out for some spotty black ice.

The rest of Wednesday will be really nice! Highs will warm up to the mid 50s with the help of ample sun.

Thursday we start off in the mid 20s and top off in the mid 40s. We’ll be partly sunny with another chance for some wintry weather Thursday night. This primarily looks like some rain and freezing rain, rather than the triple threat with snow too. We’ll keep an eye on that for you.

That will continue into Friday morning. The rest of Friday: cloudy with a chance for a spot shower and highs cooler again in the upper 30s. Saturday will be dry, breezy and cloudy but gorgeous near 50 degrees! There’s a chance for some rain showers Saturday night. Don’t forget to set your clocks forward an hour before you to go bed!

Sunday we start the day mild in the 40s and make it all the way into the upper 50s with more sun. Monday and Tuesday both look bright and in the 60s! Stay tuned.

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Massachusetts man awaits word from family in Iran after attacks

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Massachusetts man awaits word from family in Iran after attacks




Massachusetts man awaits word from family in Iran after attacks – CBS Boston

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Poya Sohrabi hasn’t heard from his family since they took shelter from attacks in Tehran. WBZ-TV’s Mike Sullivan reports.

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How will the Iran war impact gas prices in Massachusetts?

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How will the Iran war impact gas prices in Massachusetts?


With a widening conflict in the Middle East after the American and Israeli attack on Iran Saturday, global markets are bracing for a shakeup in the energy supply chain.

So, here at home, what can consumers expect at the gas pump?

An increase in oil prices is almost always followed by an increase in gas prices. And the oil market has already reacted to the war. NBC News reported on Sunday that U.S. crude oil initially spiked more than 10%, while Brent, the international oil benchmark, rose as much as 13%.

Early Monday morning, reports were coming in of black smoke rising from the U.S. embassy in Kuwait City.

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While Iran’s oil reserves supply less than an estimated 5% of global production, the main concern is the Strait of Hormuz. This maritime passageway borders Iran at the bottleneck of the Persian Gulf, and more than 20% of the world’s oil passes through. If Iran closes or restricts Hormuz, the oil market could face severe disruptions.

Gas prices rise about 2.5 cents for every dollar increase in crude oil prices. As of Sunday, U.S. crude oil prices had already increased by nearly $5 a barrel.

“I fully expect that by Monday night, you could credibly say that gas prices are being impacted by oil prices having gone up,” GasBuddy analyst Patrick De Haan told NBC News.

GasBuddy characterizes their expectations for price increases as “incremental” rather than “explosive”. The group said to anticipate a potential 10-15 cent increase over the next couple of weeks.

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