Forum Health creditors can now submit bankruptcy organization plan

YOUNGSTOWN — Despite today’s setback in U.S. Bankruptcy Court, Forum Health’s president said he still hopes to reach agreement with the health system’s creditors on a reorganization plan.

“We are continuing dialogue on a reorganization plan. ...We are aiming for a consensual plan of reorganization,’’ said Walter “Buzz” Pishkur, president and chief executive officer of Forum.

Pishkur made his comments after U.S. Bankruptcy Judge Kay Woods denied Forum’s request for a 45-day extension of its exclusive time to file a Chapter 11 bankruptcy reorganization plan.

Forum’s creditors opposed granting the extension of the hospital system’s exclusive time to file a reorganization plan, which expired Tuesday.

Forum was prepared to file a plan today, but didn’t, because it would rather wait to achieve one that all of its creditors can agree on, Pishkur said.

Forum Health includes Northside Medical Center, Trumbull Memorial Hospital and Hillside Rehabilitation Hospital and numerous pharmacy, laboratory, home health care and rehabilitation subsidiaries.

The creditors will now develop their own proposed bankruptcy reorganization plan and ask the judge to appoint a trustee with health- care expertise to operate Forum, said Heather Lennox, the lawyer for MBIA Insurance Corp., the bond insurer, which is one of Forum’s creditors.

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