The three reorganization plans being proposed for Hawaii Medical Center have been tentatively determined as feasible, according to a filing yesterday by U.S. Bankruptcy Judge Robert Faris.

A hearing is scheduled this morning to hear arguments on all three disclosure statements, which offer financial details of a reorganization plan for the Liliha and Ewa Beach hospitals.

“;Each plan deals with the debtors' assets and liabilities in a different way and is based on different projections of their future operations,”; Faris wrote in a draft letter to Hawaii Medical Center's creditors.

During this morning's hearing, the three parties will discuss whether they will approve or scrap Faris' draft letter to creditors approving all three disclosure statements.

The creditors would then vote on which they would prefer.

“;If this ends up as the final ruling, the debtors would be very excited that their plan of reorganization would be sent out for a vote, and we're hoping that is the result,”; said Paul Linehan, the Cleveland-based attorney representing Hawaii Medical Center.

Hawaii Medical Center, which owes St. Francis Healthcare System of Hawaii $46.3 million in loans, filed for bankruptcy in August 2008 after suffering operating losses of about $21.8 million since its purchase. St. Francis sold the hospitals to HMC for $67.9 million in January 2007.

The three plans:

» Under its own plan, Hawaii Medical Center would pay nonpriority creditors up to 70 percent of their allowed claims. The money would be paid in monthly installments plus 4 percent interest over seven years. But monthly payments would only be made if HMC is on schedule to paying priority creditors like St. Francis.

The payments to nonpriority creditors might be lower if HMC is unable to reduce the secured debt to St. Francis down to about $42 million by either selling the Liliha facility, refinancing it or challenging St. Francis' claim in court.

» Under the plan proposed by the unsecured creditors committee, each nonpriority claim would eventually be paid in full. There would be an initial cash payment of $1.2 million, followed by quarterly payments over nine years with 2.5 percent interest.

Priority creditors like St. Francis would also receive prepayments if HMC's earnings exceed a specified target, before interest and value adjustments.

» St. Francis proposes that each claim holder would receive a promissory note with a face amount equal to what is owed. Each creditor would receive semiannual payments of interest at 2 percent annually.

The promissory notes would mature in 10 years. The amount necessary to pay off the notes at maturity would depend on HMC's average profitability in the preceding five years.

St. Francis also seeks to regain ownership of the two hospitals. The former owner would then seek a hospital management company to operate the facilities.

CHA Hawaii, whose parent is Cardiovascular Hospitals of America LLC, owns 54 percent of HMC, while Hawaii Physician Group LLC, consisting of 130 Hawaii physicians, owns 45 percent. St. Francis Healthcare System, which used to own HMC, owns 1 percent.