New American Files Ch. 11
NASHVILLE, Tenn. (AP) _ New American Healthcare Corp. has filed for Chapter 11 bankruptcy protection for itself and its hospitals.
The company’s eight hospitals will continue operating under the terms of an agreement with banks for enough financing to pay employees and pay costs during the bankruptcy process.
``There will be no interruption of service, no closings and no layoffs at our hospitals as a result of today’s action,″ president Tom Singleton said in a statement Wednesday.
New American plans to sell its eight hospitals in six states with two in Oregon and Texas and one each in Mississippi, Georgia, Wyoming and Washington. Company officials pointed out that they were close to selling seven at the time they filed for protection in U.S. Bankruptcy Court.
When New American was formed, the company wanted to provide health care in rural areas.
On the Net: www.nahc.net