Penobscot Valley Hospital emerges from Chapter 11 bankruptcy
Officials say now, they’ll go through a 24-month debt adjustment process.
LINCOLN, Maine (WABI) - Penobscot Valley Hospital in Lincoln is emerging from Chapter 11 bankruptcy.
Almost a year ago, the hospital filed for bankruptcy protection.
In a statement, it was to ”keep critical, high-quality hospital services available in the community. By restructuring debt, PVH has emerged from the bankruptcy process in a much stronger financial position.”
Officials say now, they’ll go through a 24-month debt adjustment process.
“I am thrilled to share this news with our community. Thank you to PVH staff and medical personnel who have all worked incredibly hard over the past 24-months to stabilize the hospital’s finances while continuing to provide excellent healthcare to our patients,” said Crystal Landry, chief executive officer of PVH. “We are proud to say we have succeeded in emerging from chapter 11 bankruptcy during one of the most challenging times in our hospital’s history. "
The hospital’s Chapter 11 exit plan lays out the groundwork to make sure its mission, business operations, and jobs are preserved.
“We have always been committed to keeping the doors of this hospital open,” said Phil Dawson, Chairman of the Board for PVH. “It was a team effort, and I would like to thank our Board, Andrew Helman and the outstanding legal team at Murray, Plumb and Murray, CEO Crystal Landry and her staff for their commitment to the long-term sustainability of this hospital, and our patients for continuing to choose us for their healthcare needs and for trusting us to keep them healthy and safe during a global pandemic.”
We’re told when this plan becomes effective, a formal exit from Chapter 11 will take place.
“We would also like to thank the many creditors in the case, including Machias Savings Bank and Maine DHHS, who worked collaboratively with PVH to reach the goal of continued hospital services in the Lincoln Lakes Region for many years to come. Restructuring debt has allowed us to continue to provide key, lifesaving healthcare services to our community,” added Landry. “Now, more than ever, the importance of strong rural hospitals is clear. We look forward to serving our community for decades to come.”
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