Hutcheson Medical Center in Fort Oglethorpe, Ga.Hutcheson Medical Center's board of directors voted Wednesday night to file for Chapter 11 bankruptcy reorganization.
In a news release from Waterhouse Public Relations, Hutcheson officials said that the filing will "allow the hospital to restructure its debt for long-term viability may help protect the hospital from Erlanger's recent efforts to foreclose on the hospital's property."
Hutcheson has been unable to repay $20 million it borrowed from Erlanger Health System and is facing a threat of foreclosure. In January, Erlanger filed a civil lawsuit against Hutcheson, who was supposed to pay back the $20.5 million loan by Dec. 1 of last year.
Erlanger officials could not be reached for comment after the news release was issued at 9 p.m.
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