Rural hospital owner HMC/CAH Consolidated Inc., the owner and operator of I-70 Community Hospital, emerged from Chapter 11 bankruptcy on Jan. 17, according to a news release from the company.
HMC/CAH's exit from bankruptcy ended its 15 months of intense reorganization. The company emerged stronger financially with all 12 hospitals intact, officials said.
HMC/CAHs facilities are located in rural communities across the United States.
The major cornerstone of the reorganization plan was a consensus reached by creditors who voted for HMC/CAH's reorganization plan that was ultimately approved by the bankruptcy court.
In addition, HMC/CAH orchestrated the sale of its management rights to a new company named Rural Community Hospitals of America LLC that will operate independent of HMC/CAH.
Larry Arthur, formerly the CEO of HMC/CAH, has now become the CEO of Rural Community Hospitals of America.
Arthur noted that "HMC/CAH will emerge from bankruptcy a stronger organization."
He also noted his appreciation for the community and for the hospital employees.
"Without their support our emergence from bankruptcy would not have been possible," he said.
Arthur also noted that "through the reorganization process, HMC/CAH has significantly reduced its debt and emerged with a sustainable capital structure. Our exit from bankruptcy will provide liquidity to meet our working capital and capital investment needs."