In the News

Morehead Hospital ‘Burning Cash’

The Locker Room

November 09, 2017

"The bankruptcy hearing for Eden’s Morehead Hospital was once again continued in order to give attorneys to further review financial documents related to the proposed sale to a Florida-based for-profit healthcare partnership. The basic question is where Miami-based Empower iHCC will get the cash to make the purchase. The hearing was suspended as the chief executive officer of Empower iHCC, Noel Mijares, was explaining the complex financial arrangement under which a lender has guaranteed the $15 million Empower will use to buy and operate the hospital and its buildings. A creditors’ attorney in Morehead’s Chapter 11 case asked Mijares if his company could raise the money if the loan is reduced or falls through. A finance company has guaranteed to lend the money to Empower if the hospital’s buildings appraise for their roughly $27 million tax value. Andrew Sherman, an attorney for the creditors in Morehead’s Chapter 11 case asked how Empower could guarantee it would pay the $11.06 million it has offered if the appraisal falls short and the lender reduces its loan," as stated in this article. Sills Cummis & Gross serves as counsel to the Official Committee of Unsecured Creditors of Morehead Memorial Hospital.