The latest on the Health Center bankruptcy. |
The Plainfield Health Center (NHSC) Drama Continues to inch toward its final scene.
Since the last update (see here), there have been two more court updates -- actually one update, and one failure to meet an agreed-upon deadline.
The court-appointed "Trustee in Possession," Stephen V. Falanga, Esq., reported to the bankruptcy judge, Vincent P. Papalia on May 9 --
- The management consultant would remain in place through June, 2019.
- The consultant's rate has been negotiated down from $100K/month to $75K/month for May and June.
- The consultant will transition Dr. Kerri Powell (former Chief Medical Officer) in the chief executive role.
- (As previously reported, CEO Rudine Smith has been terminated.)
- Total post-petition IRS debt of the NHSC is $4.5 million. NHSC is in communication with the IRS and the State to determine the exact amount.
- The IRS has agree to allow NHSC to pay what it owes over a period of decades.
- The IRS has agreed to give NHSC a $500,000 credit.
- The NJHCFFA (which has loaned money to NHSC) asserted (by conference) that the agency would not agree to a self-sustaining Plan of Reorganization.
- The trustee-in-possession planned to submit a self-sustaining Plan of Reorganization to the court on May 24, 2019. The plan would include a contingency for the sale of the 1700 Myrtle Avenue property.
- As of the due June 9, the Plan of Reorganization had not been submitted to the court. (No explanation as to why.)
Many thanks to Beverly Chrisp, who keeps the community updated on this sad saga.
-- Dan Damon [follow]
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