Tuesday, October 29, 2013

Adair County Hospital District files Chapter 9 bankruptcy

Modish a move perhaps unparalleled in Kentucky, the Adair County Hospital District has voted to funnel in support of protection under Chapter 9 of the federal liquidation code, the same phase used by bankrupt cities such as Detroit.

The quarter has a $20 million debt, creditors demanding payment, and nix straighten way to recompense them. "The Chapter 9 filing will allow the sickbay quarter to reorganize by extending the timeline to repay debt, refinance debt, or reduce debt by another capital. It does not pay a debt the taxing quarter nor does it close down operations" of Westlake Regional Hospital in Columbia, reports Sharon Burton of the Adair County Community Voice.

David Cantor, an attorney with Seiller Waterman LLC in Louisville, told Burton the filing is “incredibly rare” and perhaps the at the outset in the state. “We cannot attain one in print personal belongings of a Chapter 9 in the Commonwealth of Kentucky,” he thought.

Farmers National Bank of Danville has sued in state quad, seeking to force the  quarter board to levy a area property stretch to recompense its debt. "The federal quad will, however, at the moment likely decide the area taxation put out," Burton reports. "The sickbay board voted to create a stretch but it is stuck until by the side of smallest amount the 2014 wide-ranging determination bearing in mind a crowd of citizens successfully filed a recall petition."

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