Steward Healthcare owes $9 billion in liabilities, US court hears

Steward Healthcare has declared that it owes $9 billion in liabilities during a court hearing after the company declared bankruptcy earlier this month.

The American company whose international arm had acquired Malta’s controversial hospitals’ public-private partnership had relied on backing from private equity investors like Medical Properties Trust (MPW), to purchase dozens of community hospitals, including facilities in Massachusetts, Texas and Florida.

In the US, company was subject to harsh criticism from officials in Massachusetts following the closure of nine hospitals, as it was noted that the company had sold its real estate and was left with long-term rent obligations at its hospitals.

Following its declaration of bankruptcy, Steward said that its $9 billion in liabilities include $1.2 billion in loans, $6.6 billion in rent obligations, just short of $1 billion in unpaid bills owed to medical suppliers, and some $290 million in employee wages which are yet to be paid. 

The company has put up its 31 hospitals in the US for sale, as it scrambles to pay off its debt.

Last year, a Maltese court dismissed Steward Healthcare's appeal against a decision to annul the hospitals privatisation deal which was slammed as fraudulent.

Former and current public officials are among a group of people and companies expected to be charged with fraud and money laundering charges in relation to the privatisation deal.