Hutcheson CEO Farrell Hayes believes a sale of his hospital is right around the corner. He has not seen a formal offer yet, though.A U.S. Trustee dropped his motion to dismiss Hutcheson’s bankruptcy case this afternoon.
Martin Ochs, who had asked a judge to end the case last month, decided against the move after testimony Wednesday, when Hutcheson CEO Farrell Hayes said he is about a week away from receiving a formal offer for the hospital.
If Hutcheson lost bankruptcy protection, creditors could move to foreclose on the hospital, which was about $80 million in debt in December. Ochs filed the motion because Hutcheson had incurred another $6.3 million of debt since November, and because its leaders had not filed a reorganization plan – a key aspect of a Ch. 11 bankruptcy.
Hayes testified Wednesday that the whole point of filing for bankruptcy was to give hospital administrators breathing room while trying to find a buyer for the hospital.
Meanwhile, Bankruptcy Court Judge Paul Bonapfel approved Hutcheson’s sale of its Trenton clinic to the Dade County government for $350,000. The hospital would have shut the clinic down without the offer, and Dade County Executive Ted Rumley said about 8,000 local residents use it.