Hospital Should Emerge from Chapter 11 in July
AMH reached a Chapter 11 plan settlement on May 21, 2008 with the unsecured creditors’ committee and the Pension Benefit Guarantee Corporation (PBGC) that results in a fair settlement for all parties. The plan calls for total payments of $12 million (29 cents on the dollar) over 20 years, or $6 million (14 cents on the dollar) over three years. According to CFO John Baran, “It’s a fair deal for us, a fair deal for the PBGC, and a fair deal for our employees, because their pensions will now be guaranteed by the federal government.”
A hearing will be held in Syracuse on July 10 to confirm the reorganization plan. If all goes as expected, the hospital will officially be out of bankruptcy July 23, 2008.