Thursday, December 8, 2011

Hospital may not make payroll

From the Daily News:

The federal judge overseeing the Peninsula Hospital bankruptcy case expressed her frustration Monday, urging the stakeholders to hammer out a deal before the financial axe drops on the hospital later this month.

Without a much-needed cash infusion, the Far Rockaway facility will be unable to meet payroll after Dec. 26 — a fact that is causing “enormous anxiety” among employees, union officials said.

Judge Elizabeth Stong urged Peninsula and its creditors to settle their differences before the eleventh hour.

“It’s not a good idea to wait until the last minute,” Stong said.

She noted during the hearing at Brooklyn federal court that she refused to let the stakeholders’ “emergency” become the court’s “problem.”

Before the embattled facility can get a cash infusion, the court must approve terms of the loan, including compensation for creditors. Peninsula filed for Chapter 11 bankruptcy protection in September following a precarious summer when it seemed it may close, potentially putting hundreds of people out of work.

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