Two bankruptcies, both are still open for business. BD
After the bankruptcy, a group of physicians has made an offer to purchase the facility, pending court approval. BD
North Oakland Medical Centers Inc. in Pontiac, the hospital to be sold in October to a group of senior physicians, filed for bankruptcy protection after running out of cash. Advertisement The 98-year-old hospital listed debt of as much as $100 million and assets of less than $50 million in a Chapter 11 petition filed Tuesday in U.S. Bankruptcy Court in Detroit. A not-for-profit institution, North Oakland has at least nine facilities and 366 beds. The hospital, which is only 20% full, sought permission to borrow $2.75 million from McLaren Health Care Corp. to ensure that it remains open until the sale is completed Oct. 24. North Oakland, formerly known as Pontiac General Hospital, "is in severe financial distress, despite current management's implementation of extensive restructuring and cost-cutting measures," the hospital said in court papers.
Court cases to be settled before the bankruptcy can move forward. BD
After Van Dyke spoke, the hospital's bankruptcy attorney, Jim Walsh, gave an update. He said last year the hospital filed for Chapter 11 bankruptcy and filed a plan to resolve its debt to the creditors. He said the creditors want to be sure of the size of the unsecured creditors pool. There are two issues yet to be resolved to determine the size of the pool, which includes a lawsuit filed by a former CEO and his assistant and for the claims of the PBGC of the pension plan for hospital employees. Once these issues are resolved, the bankruptcy plan can move forward.