Victory Memorial Hospital seeks 40-day exclusivity extension

By Reshmi Basu

New York, Oct. 31 - Victory Memorial Hospital requested a 40-day extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

The hospital wants to extend its exclusive plan filing period to Dec. 11 from Nov. 15 and the solicitation period to Feb. 12 from Jan. 15.

According to the motion, the hospital was recently given a $25 million state grant from the Department of Health as well as commitments from the Dormitory Authority of the State of New York and the New York State Department of Health for about $7 million in debtor-in-possession financing to fund the wind-down plan, which calls for the elimination of the hospital's acute care facilities.

The hospital, however, said it is awaiting a decision by DOH to see how much more funding will be available for its restructuring needs.

In addition, the hospital said it needs more time to formulate a consensual plan with the creditor's committee.

A hearing is scheduled for Nov. 1.

The Brooklyn, N.Y.-based hospital filed for bankruptcy on Nov. 15, 2006. Victory Memorial's Chapter 11 case number is 06-44387.

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