Creditors oppose granting Forum Health extension to create plan to exit bankruptcy

YOUNGSTOWN — Forum Health’s major secured creditors today asked the bankruptcy court to deny Forum’s request for an extension of its exclusive right to create a plan to exit bankruptcy.

The creditors, jointly called the consent parties, said Forum’s actions have led to a “crisis of confidence in its management,” and also said it would seek the appointment by the court of a Chapter 11 trustee, “one with experience in running health-care systems.”

Forum, in its motion asking the court to extend exclusivity while its works to achieve a consensual plan, said that if exclusivity ends any progress made to date would be at risk from the threat of competing plans. Forum said the moves it has made have slowed the cash drain, and said all indicators point to all of Forum’s pieces being able to emerge successfully from bankruptcy.

Forum filed for protection under Chapter 11 of the U.S. Bankruptcy Code on March 16 in Northern District of Ohio Eastern Division. Forum was to present a plan for exiting bankruptcy on Tuesday.

Forum consists of three hospitals — Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren, and Hillside Rehabilitation Hospital in Howland — and several satellite facilities.

For the complete story, see Tuesday’s Vindicator and Vindy.com