The plan, filed Thursday, says the hospital will take out a loan of no more than
The collateral backing the loan is a 5-mill tax levy by
The hearing for the plan is set for
The loan is needed to cover the cash flow issue that arises from the sale of the hospital needing to be completed before all of the accounts receivable can be collected,
The amount of accounts receivable expected from the hospital is approximately
"We believe the accounts receivable will cover the costs," he said. "We should have a good idea about that by
If the accounts receivable does not cover the cost of the loan, the balance will be released from the
The escrow account will be set aside to cover any liabilities the hospital may face following the
The escrow account has to stay in place for two years, Slover said.
"There is a millage pledge, but even if we need to utilize it I don't think the amount needed will be anywhere close to the 5 mills," he said.
Supervisors' Vice President
"We have to do what we have to do to close the sale," he said. "The hospital can't stay open for another month, so we have to stay on schedule. I hate it has come to this."
That's why the loan option is important, Supervisors President
"I prefer this option much, much more than to not close the sale and have a default on those bonds and we have to put the burden on the taxpayers for the next 17 years," he said. "That's what our financial advisor called a nuclear bomb, and we certainly don't want that."
The county does not have any other proposed input in the bankruptcy plan aside from the 5-mill collateral, Lazarus said.
The new loan will have a 5 percent interest rate. The first note on the loan will be due
CHS has put forward an initial bid of
CHS already owns
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