Creditors of Hoboken (N.J.) University Medical Center have accepted a $10.2 million settlement offer, allowing the cash-strapped hospital to move on with its sale to a for-profit group, according to a Wall Street Journal report.
The settlement still needs to be approved in a bankruptcy court, but it tentatively puts an end in sight to weeks of negotiations between HUMC and its creditors, who were owed $34 million. Hoboken Mayor Dawn Zimmer said that the Hoboken Municipal Hospital Authority would have been forced to close the hospital if a deal had not been reached.
The hospital filed for bankruptcy in August and had to settle with its creditors before it could move on with its sale to HUMC Holdco.
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The settlement still needs to be approved in a bankruptcy court, but it tentatively puts an end in sight to weeks of negotiations between HUMC and its creditors, who were owed $34 million. Hoboken Mayor Dawn Zimmer said that the Hoboken Municipal Hospital Authority would have been forced to close the hospital if a deal had not been reached.
The hospital filed for bankruptcy in August and had to settle with its creditors before it could move on with its sale to HUMC Holdco.
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