Employers are now realizing that unfunded post-retirement medical liabilities can “break the bank.” The magnitude of unfunded retiree medical liabilities has increased dramatically and has become a significant item on the corporate balance sheets of many employers.
In In re Lane,( George Lane, et. Al v. Western Interstate Bancorp), 280 F.3d 663 (6th Cir. 2002), the Sixth Circuit Court of Appeals, following the direction of the U.S. Supreme Court’s decision in Nobleman v. American Savings Bank, 508 U.S. 324, 113 S.Ct.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) added a new provision regarding personal property leases, §365(p), which provides:
The US Court of Appeals for the Ninth Circuit recently affirmed a bankruptcy court’s decision to dismiss a chapter 7 case pursuant to §707(b)(3) in In re Egebjerg. The bankruptcy court concluded that the debtor’s loan from his §401(k) plan was a secured loan, repayment of which can be expensed pursuant to §707(b)(2)(A)(iii)
About the author: Peter Hartheimer serves as the lead principal in General Capital Partners LLC in its New York office.
With state and local governments facing daunting financial challenges, chapter 9 for "government units" is becoming a more likely option. In California, state law permits communities to form "health care districts" that are authorized to issue bonds through public offerings and use the proceeds to establish health care facilities within the district.
There is no question that the nursing home industry has been battered by bankruptcies and receiverships in recent years, sometimes resulting in the closing of the home. Many factors have impacted the financial viability of nursing homes, not the least of which is the fact that nursing homes depend on Medicare and Medicaid for most of their revenues.
Bankruptcy Code §363 asset sales are becoming an increasingly attractive method employed by companies in the health care industry to monetize assets. My firm has seen the impact in our own caseload with three diagnostic imaging facilities (DIFs) we are advising recently utilizing 363 sales.
Health Care Committee Members Paul Rundell and Bobby Guy advise of 10 jointly administered cases before the U.S. Bankruptcy Court for the Middle District of Tennessee (Middle District) in which the debtors prevailed over arguments by the U.S. Trustee for Region 8 (UST) to the effect that BAPCPA effectively eliminated national health care cases.
This article examines four 2008 patient care ombudsman cases. In re Bridgeport Holdings Inc., __ B.R. ___, 2008 WL 2235330 (Bankr. D. Del. May 30, 2008), is not a health care case, but it provides important warnings to the directors and officers of health care businesses considering sales of the business or its assets.
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