Dormitory Authority objects to Victory Memorial Hospital's request for four-month exclusivity extension

By Reshmi Basu

New York, July 6 - The Dormitory Authority of the State of New York objected to a request by Victory Memorial Hospital for a four-month extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

The Dormitory Authority said the extension was far too long, given the uncertainty surrounding the hospital's future.

Victory Memorial wants to extend its exclusive plan-filing period to Nov. 15 from July 15 and the solicitation period to Jan. 15, 2008 from Sept. 15.

The Dormitory Authority said that the hospital will face an impending cash crisis and a potentially contested debtor-in-possession financing by the end of July, which may dictate its ultimate fate, according to the motion.

Instead, the Dormitory Authority has asked that the court extend the hospital's solicitation period to Aug. 3.

A hearing is scheduled for July 10.

The Dormitory Authority provides financing and construction services to public and private universities, not-for-profit health care facilities and other institutions that serve the public good in New York.

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

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