MAYOR DAWN ZIMMER ANNOUNCES APPROVAL OF SETTLEMENT AGREEMENT AND SALE OF HUMC BY CREDITORS COMMITTEE
-- Path Clear for Completion of Sale of Hoboken University Medical Center --
HOBOKEN, NJ, October 5, 2011 -- Mayor Dawn Zimmer is announcing that the Official Committee of Unsecured Creditors has approved both the bankruptcy settlement agreement, as well as the agreement to sell Hoboken University Medical Center (HUMC) to HUMC Holdco LLC. These developments clear the way for completion of this transaction and will facilitate a bankruptcy court hearing scheduled for tomorrow that hopefully will result in judicial approval of both agreements.
“This approval by the creditors committee is a major milestone for everyone who’s been working for the past few months to bring this transaction to a positive conclusion. I want to thank members of the Hoboken Municipal Hospital Authority (HMHA), as well as Hoboken Healthcare Inc. (HHI) who have worked tirelessly with the city to get this deal done. Without this agreement, it was unlikely that tomorrow’s scheduled bankruptcy court hearing would have been able to take place. Now, the court will have the opportunity to, once and for all, approve the bankruptcy settlement agreement and the sale agreement -- creating a win-win situation for creditors, hospital employees and the city of Hoboken. We are now able to say with confidence that we will be able to save over 1,200 jobs, keep the hospital open to service Hoboken and surrounding communities, and relieve the city of its $52M bond obligation -- a fiscal albatross that threatened the future of our city.
“While we are thrilled with this development, I would be remiss if I did not address the one outstanding objection to the sale of HUMC to HUMC Holdco LLC. Today, we learned that JNESO, the union representing hospital nurses and technicians, still objects to the sale. We believe this objection contains allegations that are totally without merit. In fact, JNESO’s court filing seems to be an unusual course of action considering the fact that of the 314 JNESO members who have already applied for positions at HUMC under the management of Holdco, 285 have been offered positions. That's 91%. The city, HHI and HMHA will be filing responses to JNESO’s objection and we are confident that nothing in its filing will prevent approval of the settlement agreement or the sale agreement. We hope that union officials will reconsider their action because it clearly is not in the best interests of our residents, hospital employees or patients at HUMC.”