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Medical Properties Trust (NYSE:MPW) experienced a slight downturn of almost 1% in after-hours trading following a report that its largest tenant, Steward Health Care System, had enlisted the services of restructuring advisers.
According to a Wall Street Journal report on Thursday, Steward has secured the expertise of law firm Weil Gotshal & Manges and turnaround consulting firm AlixPartners to explore potential pathways to navigate its business challenges.
In January, Medical Properties Trust (MPW) saw a significant 29% drop after taking measures to recoup outstanding rents from the ailing Steward Health Care System. The REIT is proactively working to minimize its exposure to Steward, who recently communicated struggles with liquidity due to substantial alterations in vendors’ payment terms.
Striving to bolster its liquidity and revamp its financial standing, Steward is pursuing multiple strategic initiatives, encompassing the possible sale or reassignment of select hospital operations and the shedding of non-core activities.
The short interest in Medical Properties Trust (MPW) currently stands at 26%.
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