UPDATE 1-Historic NYC hospital St Vincent’s files bankruptcy

* Bankruptcy intended to aid in asset sales, closure

* More than $1 billion debt, 25,000-50,000 creditors

* Hospital founded in 1849 to serve the poor

By Emily Chasan and Jonathan Stempel

NEW YORK, April 14 (BestGrowthStock) – The historic St. Vincent’s
Hospital in New York City’s Greenwich Village on Wednesday
filed for bankruptcy protection, after more than 160 years of
treating patients.

The voluntary Chapter 11 filing by Saint Vincents Catholic
Medical Centers of New York came just eight days after the
hospital’s board voted to halt inpatient services, and transfer
or close outpatient clinics.

In a filing with the U.S. bankruptcy court in Manhattan,
St. Vincent’s said it has between $100 million and $500 million
of assets, more than $1 billion of liabilities, and between
25,000 and 50,000 creditors.

The hospital was founded in 1849 to serve the poor.

St. Vincent’s previously filed for bankruptcy in July 2005
and emerged two years later. But it lost close to $80 million
last year, the state has estimated, and was unable to find a
stronger partner despite the efforts of state and local
politicians and community advocates to keep it afloat.

On Wednesday, St. Vincent’s said it has entered six
non-binding letters of intent to sell some non-Manhattan
hospital services: Bishop Mugavero Center for Geriatric Care,
Holy Family Home, Pax Christi Hospice, St. Vincent’s Hospital
Westchester and St. Vincent Home Health Agency.

It also said it was working with regulatory agencies to
close its Manhattan hospital inpatient services.

“This is obviously a difficult step for the greater St.
Vincent’s community,” Chief Restructuring Officer Mark Toney
said in a statement. “The relief afforded by the Chapter 11
filing ensures we will be able to continue caring for our
patients as we implement the plan of closure.”

St. Vincent’s said it has lined up $85 million of financing
from General Electric Co’s (GE.N: ) GE Capital unit and
Toronto-Dominion Bank (TD.TO: ), two of its larger creditors. It
said it would use such funding to keep operating while in
bankruptcy, including paying for staff, goods and services.

According to the Chapter 11 petition, the federal Pension
Benefit Guaranty Corp is the largest unsecured creditor, with
an estimated $180 million claim.

The case is In re: Saint Vincents Catholic Medical Centers
of New York, U.S. Bankruptcy Court, Southern District of New
York, No. 10-11963.

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(Reporting by Emily Chasan and Jonathan Stempel; Editing by
David Gregorio)

UPDATE 1-Historic NYC hospital St Vincent’s files bankruptcy