Creditors sue Forum, unions for reorganization plans

YOUNGSTOWN

Forum Health’s major secured creditors are seeking information about agreements with the bankrupt health-care system’s unions and its stand-alone reorganization plan.

The information is necessary for the creditors to assess any plan or sale motion filed by the debtors, according to a motion filed this week in U.S. Bankruptcy Court Northern District of Ohio Eastern Division.

The motion, for which no hearing date has been set, also says the information is needed to evaluate

Forum’s efforts to maximize the value of its assets for the benefit of the creditors.

The motion, filed by MBIA Insurance Corp., as bond insurer, and U.S. Bank National Association, as master trustee, said that Forum and the unions have denied access to the memorandums of understanding, saying they are subject to a confidentiality agreement with the potential buyer of the hospital system.

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