Victory Memorial Hospital seeks three-month exclusivity extension

By Caroline Salls

Pittsburgh, Nov. 26 - Victory Memorial Hospital requested an 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 company wants to extend its exclusive plan-filing period to March 11 from Dec. 11 and the solicitation period to May 12, 2008 from Feb. 12.

Victory Memorial said it needs more time to complete its asset sale, liquidate its remaining assets, review outstanding secured and unsecured claims and prepare a liquidating plan and disclosure statement.

The hospital said the asset sale may result in up to $89 million in total value, including $49 million in cash consideration, which should provide sufficient liquidity to satisfy all secured claims and may allow for a substantial distribution to holders of unsecured claims.

A hearing is scheduled for Dec. 6.

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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