Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Bankruptcy Judge Allows HealthBridge to Slash Union Workers' Benefits
Author: Joel R. Glucksman
Date: March 21, 2013
Key Contacts
Back
A federal bankruptcy judge has approved a request by New Jersey-based HealthBridge Management to temporarily reduce the benefits of 600 union workers employed by five Connecticut nursing homes while it undergoes bankruptcy proceedings.
Bankruptcy Judge Donald Steckroth sided with the distressed company after it noted that the full costs of pension and benefits insurance would force the company out of business and jeopardize its ability to continue operations at five nursing homes it owns. During the temporary reduction, pension benefits will be suspended, health insurance premiums will spike, and workers will be paid for 7.5 hour rather than 8-hour shifts. These are the same terms HealthBridge set in July when it unilaterally cut union workers’ benefits, a decision that eventually resulted in a strike.
“There can be no debate but that the interim modifications sought in the Motion are essential to the continuation of the Debtors’ business,” Steckroth wrote in his ruling.
Steckroth also noted that the five nursing homes the company services would experience a joint monthly loss of $800,000 if the reductions were not implemented. The decision will be in effect for six weeks, which the court deemed a sufficient amount of time for the company to line up financing to help it traverse bankruptcy proceedings.
HealthBridge sought bankruptcy law protection under Chapter 11 of the Bankruptcy Code in February, citing high union costs that were threatening its operating budget. The company listed roughly $50 million in liabilities, which also forced five of its union-operated nursing homes into bankruptcy. The nursing homes included in the filing are Long Ridge of Stamford, and the Westport, Newington, West River, and Danbury Health Care Centers. HealthBridge said that its bankruptcy won’t affect patient care or the operation of additional nursing facilities.
- 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 Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
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.