Judge issues order on Forum

By WILLIAM K. ALCORN

alcorn@vindy.com

YOUNGSTOWN

U.S. Bankruptcy Court Judge Kay Woods has directed Forum Health and its unions to work together to assure any auction for the health-care system’s assets will be fair and open.

In an order filed Wednesday, Judge Woods said the unions have negotiated memorandums of understanding exclusively with Ardent Health Services, to take effect when Ardent completes its purchase of Forum.

Also, she said, the unions have said they favor the purchase of Forum by Ardent and are opposed to the reorganization plan filed with the court by Forum’s major creditors, called the Consent Parties.

“To the extent the Unions’ agreements to modify the collective-bargaining agreements are limited to Ardent, bidding for Forum’s assets is effectively chilled,” Judge Woods said.

Judge Woods’ concern about a level playing field caused her Wednesday to delay until further notice a disclosure statement by the Consent Parties on the stand-alone reorganization plan for Forum the creditors recently filed. She said pursuit of the creditors’ plan “sends a mixed message to the marketplace and could chill competitive bidding for Forum’s assets.”

The judge also extended the time for objection or response to the disclosure statement until next Wednesday and set June 30 as the deadline for the Consent Parties to respond to any comments about their plan.

A hearing on the disclosure statement is scheduled for Tuesday, as well as Forum’s motion dealing with the sale of its assets to Ardent Health Services, based in Tennessee.