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HMC creditor seeks more details


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POSTED: Wednesday, June 17, 2009

St. Francis Healthcare System of Hawaii, a creditor of Hawaii Medical Center LLC, has filed an objection to the bankrupt company's disclosure statement and asked the court to allow other parties to submit reorganization plans.

HMC, composed of the Wichita-based Cardiovascular Hospitals of America and a local physicians group, acquired St. Francis Medical Center in 2007. HMC filed bankruptcy in 2008, suspending payments to creditors.

“;We were somewhat surprised by the nature of St. Francis Health Care System's objection to our disclosure statement and reorganization plan,”; said Salim Hasham, HMC chief operations and restructuring officer.

“;When we took over St. Francis' two medical facilities, they were suffering from massive losses.”;

HMC has made operational and capital improvements at HMC-East in Liliha and HMC-West in Ewa Beach, Hasham said.

“;Rather than blaming their failure on the Sisters of St. Francis, it is time for Hawaii Medical Center to admit that it has failed,”; said Sister Agnelle Ching, chief executive of St. Francis.

HMC's reorganization plan violates U.S. bankruptcy code and withholds information from creditors, St. Francis said in its objection, which also asked the court to consider other options.