Insurance company: Forum’s sale plan is flawed

By WILLIAM K. ALCORN

alcorn@vindy.com

YOUNGSTOWN

MBIA Insurance Corp., representing Forum Health’s major secured creditors, says Forum’s proposed sale procedure is flawed and makes a “fair and reasonable” sale process impossible.

In a motion filed Monday with the U.S. Bankruptcy Court here, MBIA said there are two major problems with Forum’s sale and bidding procedures — which are the subject of a court hearing at 9:30 a.m. June 22.

MBIA asked the court to delay the hearing until June 29 to give Forum time to make the corrections that the creditors want.

First, MBIA said the concessions contained in memorandums of understanding that Ardent Health Services negotiated with Forum’s unions have to be made available to other bidders to ensure a fair sale process.

Ardent, based in Nashville, Tenn., has offered to buy the bankrupt health-care system for $69.8 million and keep its three hospitals operating. The hospitals are Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland.

Included in Ardent’s offer for Forum is a pledge to spend $50 million to $70 million over five years to upgrade Forum’s infrastructure and aging medical equipment.

Second, MBIA said if the sale is consummated as now set up, Forum would be insolvent.

Also, MBIA argued in its motion that because Forum was not privy to the memorandums of understanding between Ardent and the unions, Forum does not have the authority to transfer them to any other potential buyer.