Hudson Healthcare, operator of Hoboken (N.J.) University Medical Center, top 20 unsecured creditors

August 10, 2011 - Ed Mecka - edmecka.com

Hudson Healthcare, operator of Hoboken (N.J.) University Medical Center, filed for bankruptcy on August 1, 2011.  As required by Federal Bankruptcy Rule 1007(d), the debtor is required to submit a list of the 20 largest unsecured claims.

Included in the list are claims from "PSE&G - $2,502,670",  "Hoboken Parking Authority - $1,007,740", "City of Hoboken - $903,638", "District 1199J, the National Union of Hospital and Health Care Employees, AFSCME, AFL-CIO - $1,055,045 and $494,417" and "Verizon - $306,647".

On August 9, 2011, the Jersey Journal reported that the former chief operating officer Spiros Hatiras will receive a $600,000 severance package from the Hoboken University Medical Center even though the agency that oversees the hospital is not obligated to pay it.  Hatiras, who resigned on July 14, was CEO for just two years.  The Jersey Journal also reported the following response from Hoboken Mayor Dawn Zimmer who also serves as a HMHA commissioner; 

Asked why the HMHA decided to give Hatiras the generous severance even though it didn't have to, Mayor Dawn Zimmer, also an HMHA commissioner, skirted the question.

"Given the totality of the circumstances, this was the best way to save our hospital and relieve our taxpayers of a $52 million bond guarantee."

Asked if that meant the sale of the hospital was contingent upon Hatiras receiving the lucrative severance, Zimmer said "Given the totality of the circumstances, this was the best way to save our hospital and relieve our taxpayers of a $52 million bond guarantee."

Mayor Zimmer's "cookie cutter" non-response comes as no surprise.  On August 4, 2011, RENEE STEINHAGEN, executive director of New Jersey Appleseed Public Interest Legal Center voiced the following concerns;

• The pending sale of the Hoboken University Medical Center (HUMC) to buyers with a poor track record in protecting jobs, maintaining needed community services, and providing quality healthcare services
  
• To date, we've seen insufficiently informed community involvement, a City Council that has been blocked out of the review process, and a total lack of transparency from Hoboken Mayor Dawn Zimmer's administration.
  
• Because of HUMC's status as an independent agency under the Hoboken Municipal Hospital Authority, they are not subject to the Local Lands and Building Law when selling public property. This means community stakeholders aren't seeing what is really happening to the hospital responsible for serving their healthcare needs.
  
• Mayor Zimmer should be working with all stakeholders, not hiding relevant information from their review.

Did someone say "forensic audit"?   

Hudson Healthcare, Inc. Bankrutpcy: 20 Largest Unsecured Creditors

Hudson Healthcare, Inc. (the “Debtor” ) filed a voluntary petition under Chapter 11 of the Bankruptcy Code on August 1, 2011 in the Bankruptcy Court for the District of New Jersey (Case No. 11-33014-DHS). The Honorable Donald H. Steckroth has been assigned to the case.   The Debtor estimates that it has between 1,000 and 5,000 creditors and liabilities between $10 and $50 million.  This initial note provides the Debtor’s list of its 20 largest unsecured creditors.  

The Debtor's List of Holders of Largest Unsecured Claims

The Debtor has filed a list of the holders of the Debtor's largest unsecured claims. The list is set forth below. Bankruptcy Rule 1007(d) provides that a debtor shall file “a list containing the name, address and claim of the creditors that hold the 20 largest unsecured claims... .” Fed. R. Bankr. P. 1007(d). The list does not include: (1) persons who come within the definition of “insider”); or (2) secured creditors, unless the value of the collateral is such that the unsecured deficiency places the creditor among the holders of the largest unsecured claims.