Interfaith Medical seeks exclusivity extension, open to all approaches

By Caroline Salls

Pittsburgh, Aug. 22 - Interfaith Medical Center, Inc. requested a 40-day extension of its exclusive periods for filing and soliciting votes a Chapter 11 plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

The medical center wants to extend its exclusive plan-filing period through Nov. 11 from Sept. 30 and the solicitation period through Jan. 13 from Dec. 2.

"The debtor is seeking an extension of the exclusive periods to ensure that estate assets are not dissipated by numerous creditors pursuing their own restructuring scenarios (on a varying spectrum of viability) and that resolution of this case is not unduly delayed," the motion said.

Interfaith said it expects to file a plan well within the requested 40-day extension, but "the facts and circumstances of this case as well as the debtor's limited financial resources necessitate a controlled, centralized process."

As previously reported, IM Foundation, Inc. asked the court to terminate Interfaith's exclusivity, saying it has drafted a plan that includes a repurposing plan.

IM said it "is ready, willing and able to file the foundation reorganization plan with a disclosure statement and engage in the disclosure statement approval/plan confirmation process."

Interfaith said in the exclusivity extension motion that it "remains open to considering all feasible approaches to a viable exit from Chapter 11" and has provided some constituents, including its unsecured creditors committee, the committee of interns and residents and the foundation with significant operational and financial information.

A hearing on the exclusivity extension is scheduled for Sept. 11.

Interfaith, a Brooklyn, N.Y., multi-site health-care system operator, filed for bankruptcy on Dec. 2, 2012. Its Chapter 11 case number is 12-48226.

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