The hospital first filed for Chapter 11 bankruptcy in November. The bankruptcy court dismissed the case June 24 at the request of the hospital to allow it to apply for a Paycheck Protection Program loan, according to Buffalo Business First.
Small businesses with less than 500 employees are eligible for the loans, but organizations in bankruptcy are not eligible to apply. Eastern Niagara Hospital was able to receive approval for $5.8 million in PPP loans by having its first bankruptcy case dismissed, according to the report.
Eastern Niagara Hospital President and CEO Anne McCaffrey said the hospital refiled for bankruptcy to continue the debt restructuring process.
“This financial reorganization must be concluded to ensure our sustainability,” Ms. McCaffrey told Buffalo Business First. “As the COVID-19 pandemic has confirmed, the hospital is essential to our community. We have a responsibility to the residents of our entire region to continue our critical services for years to come.”
The hospital plans to use the PPP funds to support payroll and benefits and bolster operations. It has recalled 60 employees who were previously furloughed, according to the report.
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