Maine hospital wants to temporarily exit bankruptcy to get PPP loan

Calais (Maine) Regional Hospital is relocating to briefly leave bankruptcy in an effort to receive a Paycheck Protection Program loan under the Coronavirus Aid, Relief and Economic Security Act.

Now, the health center asked a judge to dismiss its Chapter 11 personal bankruptcy filing to look for a minimum of $1.8 million in PPP funding, according to the Bangor Daily News. If the healthcare facility can leave personal bankruptcy, First National Bank has consented to extend a forgivable PPP loan to the health center. After protecting the loan, the health center would then re-petition for Chapter 11 bankruptcy, according to court filings mentioned in the report.

Morgan Haefner –
Wednesday, July 29th, 2020
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Calais Regional got a minimum of $1.5 million in PPP financing, however was denied it due to the fact that of a rule that doesnt enable insolvent health centers to receive the funds, according to the Bangor Daily News. Several rural health centers, consisting of Calais Regional, filed suits in April versus the U.S. for obstructing economically struggling companies from accessing the loans, however a personal bankruptcy judge dismissed their claims. In June, a U.S. appeals court ruled in a different case that bankrupt health centers arent qualified for PPP loans..

Check out the full report here.

The healthcare facility entered insolvency with about $25 million in financial obligation. It has actually received a minimum of $3.7 million in other federal relief during the pandemic.

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Several rural health centers, including Calais Regional, submitted suits in April against the U.S. for blocking financially struggling companies from accessing the loans, however a bankruptcy judge dismissed their lawsuits. Now, the medical facility asked a judge to dismiss its Chapter 11 bankruptcy filing to look for at least $1.8 million in PPP funding, according to the Bangor Daily News. If the medical facility can leave insolvency, First National Bank has actually agreed to extend a forgivable PPP loan to the healthcare facility.