According to federal bankruptcy code, the appointment of a Chapter 11 trustee is used when there is suspected “fraud, dishonesty, incompetence or gross mismanagement of the affairs of the debtor by current management.”
The U.S. Trustee says that North General has made millions of dollars in payments without court approval and the hospital’s management eroded its confidence in the hospitals ability to be candid in its disclosures, according to the report.
North General closed last July and filed for bankruptcy.
Read the Crain’s New York Business report on North General Hospital.
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