Mercy Hospital asks court to dismiss Chapter 11 bankruptcy cases

By Sarah Lizee

Olympia, Wash., April 20 – Mercy Hospital and Medical Center asked the court to dismiss its bankruptcy cases, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Illinois.

The debtors said that with Insight Chicago, Inc., acquiring the hospital, they no longer have a reason to be in bankruptcy.

“Dismissal of the debtors’ bankruptcy cases will allow creditors to receive quicker payments on outstanding obligations and will ensure a smooth transition from the debtors to Insight,” the debtors said in the motion.

The sale is set to close on May 31.

The debtors have reached agreements with the main stakeholders in the Chapter 11 cases concerning the dismissal.

“Mercy is in a position to pay all of its employees, secured creditors, unsecured creditors and other interested parties in full, assuming the pending Chapter 11 cases are timely dismissed,” the debtors said.

“Further, the dismissal allows creditors to proceed with receiving benefits or payments previously delayed by the bankruptcy.”

Trinity Health Corp., the sole member of Mercy System, has agreed that it will provide additional funding to cover any and all funding shortfalls if, in fact, the debtors do not have sufficient funding to honor all of the debtors’ commitments and obligations.

A hearing is scheduled for May 11.

Mercy Hospital and Medical Center is a 292-bed general medical and surgical Catholic teaching hospital in Chicago that filed bankruptcy on Feb. 10 under Chapter 11 case number 21-01805.

© 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.