Parkway files to emerge from bankruptcy

Not only has The New Parkway Hospital vowed to stay open following the recently released Berger Commission Report recommending its closing, they believe they have taken another step in the right direction by filing its reorganization plan to emerge from bankruptcy.
On Tuesday, December 19, Parkway filed its plan with the Bankruptcy Court for the Southern District of New York, and announced that is has signed a commitment letter for $18.2 million with a California-based finance company, Medical Capital Corporation, vowing to use the funds to settle outstanding claims with its creditors and the 1199 Union.
&#8220We have long anticipated this turn of events, and we are excited about the future,” said Dr. Robert Aquino, CEO and chairman of the board for The New Parkway Hospital. &#8220We would like to thank the community, our physicians and our staff for their unswerving faith and their continued support.”
Now that the reorganization plan has been filed, the hospital expects a hearing during the end of January where the court will determine whether the disclosure statement contains adequate information, and, if there is enough information, the plan will go for a vote by the creditors.
If the creditors approve the plan, it will also provide for the reinstatement of benefits and certain raises to employees. In addition, it will give a 30-cent distribution to general, unsecured creditors, according to Timothy Walsh, Parkway's bankruptcy counsel.
&#8220We think the plan provides the best alternative recovery for creditors,” Walsh said. &#8220We don't think there is any alternative plan out there that is better.”
Although the Berger Commission Report recommended the private hospital's closing, officials have steadfastly maintained that it would remain open. There have also been talks in recent weeks about a potential merger between Parkway and Mount Sinai Hospital, but nothing specific has been announced.
Parkway Hospital is a 251-bed private hospital located in between John F. Kennedy and LaGuardia Airports. Parkway's emergency department is a 9-1-1 receiving center and it is a certified stroke center as well as a level II trauma center.