Forum Health denied more time to file bankruptcy plan

YOUNGSTOWN — U.S. Bankruptcy Court Judge Kay Woods today denied Forum Health’s request for a 45-day extension of its exclusive time to file a Chapter 11 bankruptcy reorganization plan, but she granted Forum the right to use cash collateral through Oct. 20.

The denial of the extension was a major victory for the creditors, who opposed granting the extension. Today was the date on which Forum’s exclusive right to file a reorganization plan expired. Forum had sought to use cash collateral through Dec. 31.

After today’s court hearing, Heather Lennox, the lawyer for MBIA Insurance Corp., the bond insurer and one of Forum’s creditors, said the creditors now intend to file their own bankruptcy reorganization plan, ask the judge to appoint a trustee with health care expertise to operate Forum, and ask that a confidential disposition plan for Northside Medical Center, the most financially troubled part of Forum’s operation, be implemented.

Forum consists of Northside, Trumbull Memorial Hospital and Hillside Rehabilitation Hospital and numerous pharmacy, home health care, laboratory and rehabilitation subsidiaries.

Read more in Wednesday’s Vindicator and Vindy.com