Judge gives Forum Health an extension

Staff report

YOUNGSTOWN

For the sixth time since Forum Health filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the financially struggling health-care system has been granted an extension of use of its cash-collateral to operate.

Judge Kay Woods approved the extended agreement Thursday. The new agreement is scheduled to expire April 23.

The extension shows “good progress has been made” toward exiting bankruptcy, said Vince Bevacqua, a Forum spokesman.

Forum filed for bankruptcy March 16, 2009.

At this point, Forum is negotiating with a potential buyer, a Tennessee-based hospital operator, Ardent Health Services, which is believed to be the only suitor for Forum Health.

Forum and Ardent officials have refused to comment on the negotiations.

In addition, Forum filed a motion March 23 that asked for authority to retain Baker Hostetler, a Cleveland law firm, as a special counsel for antitrust matters and other concerns. Bevacqua said Forum officials would not comment on why antitrust counsel would be needed.

Forum operates Northside Medical Center in Youngstown, Trumbull Memorial in Warren and Hillside Rehabilitation Hospital in Howland.