Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
HealthBridge Seeks Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: March 15, 2013
Key Contacts
Back
Five Connecticut nursing homes operated and managed by HealthBridge Management were recently forced to seek Chapter 11 Bankruptcy Protection.
The filing resulted after HealthBridge was denied a request to delay a court order forcing it to reinstate 600 union workers that went on strike after the company unilaterally changed their labor contracts, according to The Associated Press. As a result, the company was forced to file for protection in a U.S. Bankruptcy Court in Newark, New Jersey.
HealthBridge officials said union pensions and health benefit costs for workers with District 1199 of the New England Health Care Employees Union were “unsustainable,” the AP reports. The five nursing homes affected by the bankruptcy – Long Ridge of Stamford, Newington Health Care Center, Westport Health Care Center, West River Health Care Center in Milford, and Danbury Health Care Center – employed the majority of workers represented by the union.
However, the company’s homes that are considered non-union are not part of the bankruptcy proceedings.
Although HealthBridge noted that the bankruptcy will not impact patient care and that it has enough money to continue operations, many union members have spoken out against the company’s decision to seek protection. David Pickus, president of SEIU District 1199, said the company is using bankruptcy to avoid its financial obligations to its employees, according to the Hartford Courant.
However, HealthBridge contends that the costs for maintaining existing labor contracts could result in the closure of several nursing homes, the transfer of patients to other facilities, and the termination of more than 1,100 employees.
“The centers have a bright future if they can operate under labor agreements that reflect today’s financial realities, but the fact is the centers will not survive unless we have relief from the crushing burden of unsustainable labor costs, especially the spiraling costs of pension and healthcare obligations,” spokeswoman Lisa Crutchfield said, according to the Courant.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.