N.Y. Dormitory Authority asks court to allow Victory Memorial to repay hospital revenue bonds

By Jennifer Lanning Drey

Portland, Ore., Feb. 2 - The Dormitory Authority of New York requested court approval for Victory Memorial Hospital to use monies held in various accounts to redeem its FHA-insured mortgage hospital revenue bonds, series 1999, and to pay the remaining obligations under the loan agreement related to the bonds.

The request was made in a Friday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

Approximately $23.5 million of the bonds were outstanding when the company filed for bankruptcy in 2006, according to the motion.

The company said the New York State Department of Health disbursed a grant under an agreement with Victory Memorial for the sole purpose of redeeming the bonds and paying the remaining obligations under the pre-bankruptcy loan agreement.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.