Izard County hospital seeking Chapter 11 bankruptcy

Izard County hospital seeking Chapter 11 bankruptcy
A Missouri-based company, which has Izard County Medical Center as an affiliate, has submitted a voluntary petition to seek Chapter 11 bankruptcy with a federal bankruptcy court. (Source: Gray News)

LEXINGTON, Ky. (KAIT) - A Missouri-based company, which has Izard County Medical Center as an affiliate, has submitted a voluntary petition to seek Chapter 11 bankruptcy with a federal bankruptcy court in the Bluegrass state.

According to federal court records, Americore Health Enterprises, based in St. Louis, filed the paperwork Dec. 31 in the United States Bankruptcy Court for the Eastern District of Kentucky.

The paperwork noted the company has estimated assets of $0 to $50,000, as well as estimated liabilities of $0 to $50,000. The paperwork also noted at least 10 pending bankruptcy cases, with each including Izard County Medical Center, LLC, listed as an affiliate.

Chapter 11 bankruptcy allows a person or a company to reorganize their debts, according to the federal court website.

According to a Chapter 11 operating order in the case, the company must comply with several things including all orders from the court, set up accounts to pay debtors, create new financial books and set aside money to pay state and federal taxes collected from employees or others.

A federal patient care ombudsman will also be appointed on the issue, plus the company must file a list of creditors holding 20 largest unsecured claims, officials said in federal court paperwork.

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