Auburn Memorial Hospital is seeking more time from the U.S. Bankruptcy Court to file its Chapter 11 reorganizational plan.
In a recent filing with the court, AMH argues the complexity and size of the case prevent hospital officials and their attorneys from filing an acceptable plan by the Aug. 22 deadline now in place.
Under bankruptcy law, Chapter 11 debtors are allowed a period time in which only they are allowed to submit a reorganizational plan that would be subject to a creditor vote and court approval. It is not uncommon in large cases for those debtors seek extensions for this exclusivity period. Once that time expires, other parties may submit their own proposed plans.
Among issues cited by AMH as taking considerable time and resources to address are talks with an employee union over that status of retirement plans, along with addressing the debt owed to the federal pension oversight agency.
AMH is asking for a Dec. 20 deadline to file its plan. It's also asking for a related extension on the deadline for soliciting approvals of its plan from creditors. It would like that deadline moved from Oct. 21 to Feb. 18.
A hearing on the request is scheduled for Aug. 23. The bankruptcy court has issued an order extending the Aug. 22 deadline, which precedes the hearing, at least until the court makes a decision on the request.
Under bankruptcy law, Chapter 11 debtors are allowed a period time in which only they are allowed to submit a reorganizational plan that would be subject to a creditor vote and court approval. It is not uncommon in large cases for those debtors seek extensions for this exclusivity period. Once that time expires, other parties may submit their own proposed plans.
Among issues cited by AMH as taking considerable time and resources to address are talks with an employee union over that status of retirement plans, along with addressing the debt owed to the federal pension oversight agency.
AMH is asking for a Dec. 20 deadline to file its plan. It's also asking for a related extension on the deadline for soliciting approvals of its plan from creditors. It would like that deadline moved from Oct. 21 to Feb. 18.
A hearing on the request is scheduled for Aug. 23. The bankruptcy court has issued an order extending the Aug. 22 deadline, which precedes the hearing, at least until the court makes a decision on the request.
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