In a long anticipated move, St. Vincent’s Hospital in Manhattan filed for bankruptcy Wednesday, revealing that its largest unpaid creditor was a federal pension insurance agency.
The Chapter 11 bankruptcy petition, which was filed in Federal District Court in Manhattan, reveals liabilities of at least $1 billion. This is likely less than what the hospital really owes, as the maximum amount a debtor may check on the form is for that sum.
A medical malpractice trust monitor was second on the list of creditors, with the hospital owing them $113 million.
Hospital spokemans Michael Fagan said that the bankruptcy filing would allow the hospital to continue caring for patients as it closes.
While the hospital owes the Pension Benefit Guaranty Corporation $180 million, Fagan says that the pensions of nurses at the hospital were not at risk.
Falling into debt and filing for bankruptcy can be very ugly, even for prominent institutions like St. Vincent’s. If you are experiencing financial difficulties and need help filing for bankruptcy, contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, at 414-377-0518 to discuss your legal options.