A year ago, as the sales process was getting kicked up, citizens were publicly led to believe the sales process would be wonderfully easy and beneficial.
A professionally produced sales video -- aka propaganda -- was produced suggesting a new hospital would be built and all the flowers in town would immediately bloom year round, or something like that.
The fact is this wonderful plan as it was pitched -- new hospital built, all employees retained, new specialist doctors, etc. -- has turned pretty ugly fast.
At the moment, all of the local hospital bashers who have been screaming, "Sell, sell, sell," for months now may be scratching their heads a bit.
The plan, from their perspective, was to sell the hospital quickly thus freeing the county from its standby tax obligation to cover the hospital's approximately
Now, however, it appears the hospital's financial death spiral has become so steep that a new standby tax commitment, along with a loan of up to
What's worse, even with the complex financial finagling going on to get the hospital sold, the hospital's non-secured creditors may still take a bath before it's all said and done.
Despite lots of talk that
A committee appointed to represent the non-secured creditors in the bankruptcy put the hospital's financial mess in clear order in a recent letter that effectively urged all the non-secured creditors to simply take the deal being offered. The letter said, in part:
"When the bankruptcy case was first filed,
"The suggestion by
The committee goes on to say the hospital's inept financial record keeping caused it to inaccurately report its financial projections.
Last week, the public learned that hospital attorney
While such an last-minute payment to an insider may not be illegal under the Chapter 9 bankruptcy rules, it certainly smells bad, particularly when the rest of the unsecured creditors had no such option and may be stuck waiting up to two years just to see how many pennies they may receive for each dollar earned.
(c)2014 The Natchez Democrat (Natchez, Miss.)
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