Investing.com -- Medical Properties Trust Inc (NYSE:MPW). saw its shares drop by as much as 4.4% during premarket trading on Monday. This followed a statement from the company regarding the decision by its tenant, Prospect Medical (TASE:PMCN) Group, to initiate a Chapter 11 restructuring.
Prospect Medical Group has reportedly not paid rent to Medical Properties Trust since June 2024. Furthermore, the company's Connecticut and Pennsylvania lessees and mortgagors have only made minimal payments over the past two years.
Medical Properties Trust has been recognizing all revenues from Prospect using cash-basis accounting since 2023, as stated by the company.
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