Friday, May 25, 2012
HOPE A deal to help Medical Park Hospital in Hope out of Chapter 11 bankruptcy enables Wadley Regional Medical Center in Texarkana to make the facility a loan and eventually buy the property.
The hospital has $4.5 million in loans and other obligations. Medical Park defaulted in March but a move approved Thursday will allow Medical Park to pay its employees and vendors.
The Texarkana Gazette reports bankruptcy trustee Jack Spencer made the deal that will allow the hospital to keep running while it works to put its bankruptcy in the past.
The approximate 300 employees at Medical Park hadn’t been paid since mid-April. The hospital payroll is $340,000 every two weeks.
Wadley is loaning the hospital nearly $1.3 million to keep it open until its finances are reorganized.