Tennessee Hospital Files Chapter 7 Bankruptcy

Written by CFB Blogger. Posted in Blog

Crittenden Regional Hospital, located in West Memphis, Tennessee, has recently filed an unexpected Chapter 7 bankruptcy. According to the Memphis Business Journal, the medical center listed debts of between $500,000 and $1 million in their bankruptcy filing. The 140-bed hospital closed in late August, reports Michael Sheffield, “despite Crittenden County passing a five year sales tax increase to fund the financially troubled hospital. However, right before the vote, the hospital was damaged by a fire and the smoke and water damage from the firefighting effort.” Federal Insurance Co. filed an interpleader in the bankruptcy case, asking the judge how to determine to divide the $2.7 million it owes the hospital. The money is related to the summer fires that damaged the main hospital and the MRI building. To date, Federal Insurance has paid the hospital $8.2 million for the damage to the main hospital and advanced it $40,000 for the MRI claim. D&A Enterprises Inc., which does business as Servpro, contends that it has a claim of $2.4 million against the hospital for the clean-up and repairs following the two fires. Baldwin & Shell Construction Co. may also have a claim of $442,000 for work it did after the fire, according to the insurance company’s filing. The Journal reports that Crittenden County officials have held discussions with potential operators to replace the hospital. “The bankruptcy filing is the first step toward resolving the hospital’s debt. The county owns the building and land, but the hospital owes nearly $7 million on revenue bonds. An arrangement to pay those bonds would have to be made with the bondholders before the building could be reopened. Once the bankruptcy hearings are completed, [county officials will] put together a…team to either find a new operator or determine the feasibility of opening a new hospital in Crittenden County.” If you are facing piles of unpaid credit card bills, medical bills and deficiencies on foreclosed mortgages or repossessed cars due to long-term unemployment, filing for Chapter 7 or Chapter 13 personal bankruptcy with a Client First Bankruptcy attorney at your side may be the key to your financial freedom. For your free initial phone consultation, please call us at 800-383-6004 Monday-Friday from 8:30 a.m. – 6:00 p.m. Central Time. For up-to-date information on filing your personal bankruptcy, you can log onto www.clientfirstbankruptcy.com anytime. We have helped thousands of clients discharge their debt; we may be able to help you too. Stop struggling with bills; and start living debt-free.