Court Approves $5 Million Financing And Extension Of Contract Modifications For Connecticut Nursing Homes Managed By HealthBridge
DANBURY, Conn., April 10, 2013 /PRNewswire/ -- The U.S. Bankruptcy Court for the District of New Jersey has approved a $5 million financing agreement for five Connecticut nursing homes that will allow the facilities to continue providing quality patient care during their Chapter 11 reorganization, HealthBridge Management LLC announced today. HealthBridge, which manages but does not own the facilities, also said the Court approved an extension of interim modifications to the facilities' collective bargaining agreements.
"The approval of these two motions ensures that these valuable community resources will be able to carry on their vital work of caring for their elderly residents," said Lisa Crutchfield, Senior Vice President, Labor Relations, for HealthBridge Management. "The new financing gives the nursing homes the financial stability to reorganize and emerge from Chapter 11 as a more vibrant group of facilities that will continue to serve residents for many years."
The financing, known as a debtor-in-possession financing, is being provided by Capital One and ensures timely payment to the nursing homes' vendors and employees during the reorganization. Each of the five facilities is a sub-acute and long-term nursing care home for the elderly in Connecticut. The facilities are: Long Ridge of Stamford, Newington Health Care Center, Westport Health Care Center, West River Health Care Center, and Danbury Health Care Center.
The facilities filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on Feb. 24 in order to reorganize and implement plans to create competitive and durable cost structures. The nursing homes' plans include gaining relief from unsustainable union pension and medical benefits costs and other restrictive provisions in the union labor agreements that hamstring the facilities' flexibility.About the Nursing Homes The five nursing homes provide long-term care and short-term rehabilitation services. For long-term care residents who have medical needs, the facilities provide 24-hour-a-day nursing care, nutritional monitoring and planning, medication management, personal care and other medical services such as podiatry, dentistry and ophthalmology. For individuals in need of nursing and/or rehabilitation services following a recent hospitalization for orthopedic surgery, stroke, oncology care, cardiac care, general surgery and other diagnoses, the nursing homes offer medical and physical rehabilitation including physical, occupational and speech therapy, rehabilitative nursing and physician directed rehabilitation plans, IV therapy, wound care and other services. The facilities are managed but not owned by HealthBridge Management LLC, which is not party to the Chapter 11 filing.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV