2012-05-11 / Community

PHC To Be Liquidated By August

By Howard Schwach

Even as The Wave was put to bed and the state’s Health Commissioner spoke to a large group of local residents at the Knights of Columbus on Thursday afternoon, word came to the paper that the liquidation of the hospital property would begin shortly and would be over by late summer.

Documents filed today in the United States Bankruptcy Court for the Eastern District ask permission for the sale.

The petition, filed by Bankruptcy Trustee Lori Lapin Jones lists 20 pages of equipment and furniture to be sold, including everything from chairs to refrigerators to major equipment used for medical tests.

Sources say that proceeds from that sale, an estimated $2 million, would then be used to keep the bankruptcy process going until the final sale of the property early in the summer.

Those sources say that the creditors will not see a penny from this sale, however. Their payback will come, perhaps by the end of the summer, with the real estate sale of the property and buildings.

Records on the Federal Bankruptcy Court’s website show that the restructuring fees for the lawyers and other professionals associated with the process will cost approximately $1.2 million, with about $569,000 going to the counsel to Trustee Lori Lapin Jones.

The auction for the hospital will not include any of nursing home, which has remained open and in operation even with the hospital shuttered.

            

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