Medical Properties OKs Nu-Med Payment Plan

Medical Properties Inc. in Encino said its shareholders have approved a plan to accept a $4.4-million payment from units of Nu-Med Inc. in exchange for canceling the units’ leases on a La Mirada Hospital and an adjacent medical office building.

Medical Properties is a real estate investment trust that invests in health-care properties. The subsidiaries of Nu-Med, a struggling hospital operator based in Encino, have stopped paying rent on the La Mirada facilities, and the hospital was closed in May.

The $4.4-million payment will be in the form of a five-year, 10% note that will be secured by certain assets.

At their special meeting, Medical Properties shareholders also approved a reduction in monthly rent payments on Valley Community Hospital in Dallas, Ore., which is also operated by a Nu-Med subsidiary. The monthly rent was cut to $60,000 from $72,917.