Seder & Chandler, LLP
Worcester 508-471-3018
Westborough 508-709-0024

Relatively new hospital files for Chapter 11 bankruptcy

A hospital in another state recently filed for bankruptcy. The Chapter 11 bankruptcy filing comes just a couple of years after its opening. The goal of such a bankruptcy filing in the state of Massachusetts and elsewhere is to strengthen the organization financially so that it can be successful long term.

The CEO who has decided to move forward with the bankruptcy filing assumed leadership of the hospital back in Oct. 2016. He is the third CEO of the for-profit institution. Because Chapter 11 was selected, this means that the organization's debt will be restructured.

The filing is not expected to impact the facility's daily operations, and none of its approximately 300 workers will be laid off. In fact, the CEO stated that the hospital should remain open to serve the community for a long time. The bankruptcy process is expected to take around five to six months. The CEO noted that the court filing is simply the clearest and most rapid path toward achieving operational success.

Sometimes debt gets out of control due to changes in a business market or industry, or major fluctuations in the economy. However, with Chapter 11 bankruptcy, it is possible to reorganize a company's finances and thus alleviate its debt burdens so that it will remain sustainable. A Massachusetts business owner will essentially be able to negotiate his or her way to a fresh start financially. An attorney can explain the Chapter 11 process, which is different from other types of bankruptcy filings, and help a company through each stage.

Source: tucson.com, "Green Valley Hospital to file for Chapter 11 bankruptcy", Stephanie Innes, March 31, 2017

No Comments

Leave a comment
Comment Information
Get Legal Help Now

Contact Us Today To Learn More

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Worcester Office
339 Main Street
Suite 300
Burnside Building
Worcester, MA 01608

Phone: 508-471-3018
Worcester Law Office

Westborough Office
1900 West Park Drive
Suite 280
Westborough, MA 01581

Phone: 508-709-0024
Westborough Law Office