BURLINGTON — The federal judge in Springfield (Vt.) Hospital’s bankruptcy case has set a date next month for a hearing of the hospital and associated clinics’ plans to exit Chapter 11 bankruptcy.
Judge Colleen Brown, in an order issued Tuesday, set the hearing for Dec. 9 at 9:30 a.m. before the U.S. Bankruptcy Court in Vermont via Zoom.
The 25-bed hospital and its associated Springfield Medical Care Systems clinics in six area towns filed plans in September to exit bankruptcy as separate entities at the end of the year. Those plans, which largely hinge on $6 million in “exit funding” from the state of Vermont, require the court’s approval.
Any objections to the plan, which the hospital and its attorneys are required to provide to its creditors, must be filed in writing by 4 p.m. Nov. 30. Those who plan to participate in the hearing need to contact the courtroom deputy by 10 a.m. Dec. 8 at jody_kennedy@vtb.uscourts.gov or 802-657-6404.
The two entities first entered bankruptcy in June 2019, following several years of operating losses. Those losses eventually resulted in the accumulation of a total of about $20 million in debt.