Janice Grubin, co-chair of Barclay Damon’s Restructuring, Bankruptcy & Creditors’ Rights Practice Area and counsel to North Star Health Alliance, was quoted in the North Country Now article “Creditors, DOH, and North Star Working Together After Weeks of Stagnation; Manzer Credited With Progress on DOH Concerns.”
North Star Health Alliance reported signs of progress in bankruptcy court, including the submission of a short-term operational plan to the New York State Department of Health (DOH) and continued efforts to stabilize its hospitals while pursuing a longer-term restructuring strategy.
Janice indicated that the organization is working toward both immediate and future solutions. She noted that the short-term proposal is designed to support ongoing operations and is currently under state review. In addition, she explained that “that proposal contemplates, as well, a second piece of longer-term financing to implement a fuller transformation plan, if you will, with an identified partner.”
While no partner has been finalized, Janice emphasized that discussions are ongoing. She also pointed to improved collaboration among stakeholders, adding that “I’d like to think that because of Mr. Manzer’s influence as interim CEO… a lot of the DOH’s concerns… have been somewhat addressed, and we are moving forward, in my opinion, in a very positive way.”
The court approved North Star’s continued use of cash collateral on an interim basis to fund operations, including payroll, though creditor support remains limited to short-term extensions. Despite ongoing financial challenges and a looming cash shortfall, the organization appears to be making incremental progress as it works with regulators, creditors, and other stakeholders to maintain hospital operations and identify a path forward.
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