Judge chides Forum sides to get moving on sales talks

By WILLIAM K. ALCORN

alcorn@vindy.com

YOUNGSTOWN

The parties in the Forum Health bankruptcy case said they would meet today after U.S. Bankruptcy Judge Kay Woods “very, very strongly urged” a face-to-face session to move the stalled case forward.

Judge Woods, obviously irked by a recent flurry of motions, offered the use of the court’s witness rooms for the meetings. The motions deal with whether and under what conditions Ardent Health Services, so far the lone bidder for Forum, must surrender memorandums of understanding with Forum’s unions,

Representatives of the parties — Forum Health, Ardent and MBIA, bond holder for the hospital’s major creditors, collectively known as the consent parties — said Tuesday they planned to accept the judge’s offer and meet.

“What is going on? The parties have papered this to death,” said Judge Woods at a hearing scheduled to hear two motions on the memorandums, both of which were withdrawn.

“What concerns me is that the parties appear to be so much at odds ... they don’t seem to be able to work together toward a solution” and the ultimate goal of a fully functioning hospital, whether through Chapter 11 reorganization or a sale.

“The parties are going for the jugular and a scorched-earth policy. The lay people will sense this, and it might affect their confidence in these institutions. That’s the last thing anyone in this room should want,” she said.

At issue are the memorandums negotiated between Ardent and Forum’s unions. MBIA wants the information in the memorandums, saying it is necessary for it to determine if Ardent’s offer of $69.8 million for Forum assets is sufficient.

Ardent’s attorney said the firm considers MBIA a competitor and as such thinks the information contained in the memorandums would give an advantage to MBIA, which has filed its own Forum reorganization plan with the court.

Ardent’s attorney also said any potential buyer, including MBIA, can do the same thing it did and negotiate with the unions.

Aug. 5 is the deadline to submit bids to buy Forum. Judge Woods said the Aug. 9 sale hearing will go forward, but MBIA likely will contest the sale.

“There has to be middle ground here rather than the parties digging in their heels,” she said.