New Jersey hospital's bankruptcy held up by settlement discrepancy
The latest in New Jersey's Hoboken University Hospital's bankruptcy case has creditors pursuing more than $10 million as part of a settlement that would allow for the sale of the facility, the Statehouse Bureau reports.
The latest in New Jersey's Hoboken University Hospital's bankruptcy case has creditors pursuing more than $10 million as part of a settlement that would allow for the sale of the facility, the Statehouse Bureau reports.
The proposed plan upon filing for protection under Chapter 11 bankruptcy law had the creditors seeing a return on roughly $5 million of the estimated $34.6 million in total debts. However, the city is reluctant to foot the extra costs and is pushing the hospital to close its doors as creditors have made it clear they want a $10 million to $12 million settlement.
“Advice apparently was given to the hospital that it had an unlimited source of funding from the Authority and from the city,” attorney Ken Rosen told the newspaper in an email. “When the Authority members discovered the extent of the Hospital's losses, they directed that the hospital live within its budget."
Rosen said the hospital has been directed to ensure that expenses do not exceed revenue.
According to a September 8 Statehouse Bureau article, the initial plan would have had bondholders, who financed the city's takeover of the hospital four years ago, repaid completely to the tune of $52 million in unpaid loans as well as an additional $11 million to be subsidized by state taxpayers.
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