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ONA objects to plan of Forum creditors
By WILLIAM K. ALCORN
YOUNGSTOWN
The Ohio Nurses Association has filed an objection to the stand-alone reorganization plan for Forum Health proposed recently by the bankrupt health-care system’s major secured creditors.
In a motion filed Friday in U.S. Bankruptcy Court here, the deadline for objecting, ONA said the creditors’ plan “cannot be confirmed on its face as a matter of law” and that their filing with the court does not contain “adequate information” to be evaluated.
The ONA’s Youngstown General Duty Nurses Association represents about 400 nurses at Northside Medical Center, one of Forum’s three hospitals.
The others are Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland. On March 16, 2009, Forum filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
In its motion, ONA says the proposed plan of the creditors, known collectively as the consent parties, is “fatally flawed” because it is dependent on additional labor concessions that cannot lawfully be obtained from the ONA.
In a tentative agreement reached between ONA and Forum, Forum waived its right to further resort to concessions, and the consent parties were not involved in reaching the agreement and “have no standing” to seek further concessions.
The consent parties’ proposal is dependent upon further concessions from ONA.
In other court action, an expedited hearing on a Forum motion to approve sale and bidding procedures is scheduled for 9:30 a.m. June 22 at the bankruptcy court.
Forum also has filed a motion to postpone the hearing on the consent parties’ plan and to hold the consent parties’ plan of reorganization in abeyance pending resolution of the sale process, according to court documents.