Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Long Beach Medical Center files for bankruptcy
Author: Joel R. Glucksman
Date: February 25, 2014
Key Contacts
Back
New York’s Long Beach Medical Center announced that it has filed for protection under Chapter 11 of the bankruptcy law, according to Long Island Newsday. Hurricane Sandy did extensive damage to the medical center in October of 2012, forcing the facility to close down almost entirely, and it has remained essentially closed since the storm.
According to Bloomberg Business Week, the hospital’s debts were listed at $48 million in the documents filed with the U.S. Bankruptcy Court in Central Islip, N.Y. “The storm further exacerbated an already precarious financial situation and left the debtors in a situation from which they have not been able to recover,” said Douglas Melzer, the CEO of Long Beach Medical Center.
As part of its reorganization strategy, on Feb. 18, Long Beach Medical Center and South Nassau Communities Hospital had announced that a takeover, which they have been discussing since June, will take place. Under the proposal, South Nassau plans to acquire Long Beach Medical Center’s assets for $21 million and redevelop the campus, reported the news source. Plans for the redevelopment involve a freestanding 24-hour emergency center, including an urgent-care facility that could be open as soon as May. Damian Becker, a spokesperson for South Nassau, said that the filing “was a logical extension of the circumstances stemming from the destruction to the Medical Center caused by superstorm Sandy.”
Court papers noted that South Nassau’s offer will be submitted to the bankruptcy court for a court-supervised auction, according to the news source.
City Manager Jack Schnirman told Long Island Newsday that the city wants the emergency center to be open as soon as possible. “We want to have a seat at the table,” he said. The city is among those owed by the hospital, as a result of more than $600,000 in unpaid utility bills and other fees.
- 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
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
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.