Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
New York Health Company Filed for Bankruptcy
Author: Joel R. Glucksman
Date: June 6, 2013
Key Contacts
Back
New York-based Sound Shore Health System has filed for bankruptcy law protection under Chapter 11 of the Bankruptcy Code and announced its plans to sell its assets to Montefiore Medical Center.
The company, which provides health care services to its medical center in Westchester as well as a hospital and nursing home facility, cited cuts in government spending as the cause of its financial troubles. Sound Shore listed assets of $159.6 million at the end of 2012 and liabilities of approximately $200 million, according to Reuters.
“As is true with many community hospitals serving a working-class constituency, the Medical Centers have been beset by the financial pressures caused by cuts in Medicare and Medicaid funding,” the company said when it filed documents in the U.S. Bankruptcy Court for the Southern District of New York.
In the wake of its bankruptcy filing, Sound Shore entered into an asset purchase agreement with Montefiore Health System, which will acquire its assets and assume most of its liabilities. The company said it will continue to provide uninterrupted healthcare throughout the sale period and patient treatment and care will not be impacted.
Sound Shore also noted that it has secured commitments for debtor-in-possession financing that provide it with working capital and allow it to continue operations through the bankruptcy process. While the exact terms of the deal were not disclosed, Montefiore is expected to pay roughly $54 million for Sound Shore’s assets. However, the sale remains subject to bankruptcy court approval. Both parties have said they expect the bankruptcy deal to close by the end of 2013, Becker’s Hospital Review reports.
Reuters reports that Sound Shore is not the only health services provider that has buckled under the weight of budgetary shortfalls. Recently, KidsPeace Corp of Pennsylvania, was also forced to seek bankruptcy protection as a result of spending cuts.
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.