The Chapter 11 trustee for Izard County Medical Center LLC is “exploring a sale” of the 25-bed hospital in Calico Rock, according to a bankruptcy filing last month.
Carol L. Fox, the trustee for ICMC and its parent company, Americore Holdings LLC of St. Louis, wants to block ICMC’s landlord, Calico Rock Med LLC, from canceling its lease, according to her March 24 filing in the U.S. Bankruptcy Court for the Eastern District of Kentucky.
If the lease is canceled, “the Trustee will not be able to sell Izard Hospital as a going-concern, which will have a tremendous negative impact” on the hospital’s assets, attorney Tiffany Payne Geyer of Orlando, Florida, who is representing Fox, wrote in her filing.
Calico Rock Med said in November that ICMC owed $329,000 for rent payments and filed a lawsuit in Izard County Circuit Court to terminate the lease or appoint a receiver for the hospital. But that lawsuit was put on hold when ICMC and Americore filed for Chapter 11 bankruptcy reorganization on Dec. 31, with ICMC listing $2 million in assets and $3.7 million in debts. Since the filing of the bankruptcy, ICMC hasn’t paid rent and owes an additional $141,000, Calico Rock Med said in its March filing.
Calico Rock Med has asked the judge for permission to move forward with its lawsuit.
“Even after the appointment of Ms. Fox as Trustee, the mismanagement continues to the detriment of Calico Rock,” Calico Rock Med said in its filing. Geyer did not return a call for comment.
A hearing on whether Calico Rock Med could move forward with its lawsuit was set for last Thursday, after Arkansas Business’ deadline.
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