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
- 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
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
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.