Changes in the healthcare system have placed enormous financial pressures on hospitals and other healthcare providers in the region, resulting in an unprecedented number of healthcare providers seeking insolvency and restructuring guidance, and in certain instances, resorting to protection under Chapter 11 of the Bankruptcy Code.
The Cole Schotz Bankruptcy & Restructuring Department has played a prominent role throughout the region in providing bankruptcy and out-of-court restructuring advice to a wide array of distressed healthcare providers.
Cole Schotz represented Passaic Beth Israel Hospital (“PBI”), a New Jersey nonprofit hospital that operated a 262-bed acute care hospital in Passaic in its Chapter 11 bankruptcy. In that case, Cole Schotz orchestrated the sale and merger of PBI with St. Mary’s, a neighboring hospital, resulting in the closure of St. Mary’s existing facility and the consolidation of both hospitals at PBI’s more modern campus. The transaction was financed through the first-time use of NJHCFFA Hospital Asset Transformation Bonds, which are backed by State of New Jersey credit enhancements. Cole Schotz led PBI and its board through all aspects of the Chapter 11 bankruptcy, as well as through the state regulatory process successfully concluding this transaction.
In the Chapter 11 proceedings of Bayonne Medical Center (“BMC”), Cole Schotz was selected to protect the interests of Financial Security Assurance Inc. (“FSA”), the insurer of two bonds issued from NJHCFFA with an outstanding principal balance of $34 million. Cole Schotz, on behalf of FSA, has played an active role in “shaping” the bankruptcy proceeding in an effort to maximize value for the bondholders.
St. Vincent’s Catholic Medical Center of New York and related entities (collectively, “St. Vincent’s”) commenced Chapter 11 bankruptcy cases in the United States Bankruptcy Court for the Southern District of New York, culminating in the confirmation of a plan of reorganization. Critical to the success of that plan is St. Vincent’s construction of a new modern facility in downtown Manhattan based upon the sale of its existing facility to Rudin Development, LLC (“Rudin”). Cole Schotz represented Rudin throughout the bankruptcy process to assure it the benefit of its bargained for rights in the context of this complex acquisition and development transaction.
Cole Schotz has also been retained as bankruptcy counsel to St. Joseph’s Regional Medical Center in connection with the Chapter 11 bankruptcy of neighboring Barnert Hospital.
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