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.
Related Articles on Hoboken University Medical Center:
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