Children’s Hospital CEO announces bankruptcy filing

That will be determined in the bankruptcy process. I don’t know how they will view it. I do know how we are going to argue it should be viewed.

But I don’t know how the bankruptcy process will ultimately handle that lien.
But that’s a key factor in the timing of this decision.

In March, entered into an agreement for a change of control. that would align mutual interests and resolve the children’s hospital debt and operational structure.

both parties left that mediation with agreed to terms and a deadline of april 30 to complete a final agreement and transaction.

The April 30 deadline passed and UMC failed to agree a definitive agreement with the mediated terms. El Paso Children’s Hospital repeatedly told UMC that the new and final deadline because of many financial and operational reasons, had to be May 15.

Since that mediation, UMC unilaterally changed the terms and on May 13 it submitted a completely different term sheet to Children’s Hospital.
Unfortunately the manner in which UMC has navigated the mediation process has been unproductive, and not in the best interest of the Children’s Hospital.

It is our obligation to the residents of El Paso County to protect the independent operation of El Paso Children’s Hospital. And more importantly, our mission, which is to care for ill children in the region.

We plan to restructure our debt, our financial dealings, insurance partnerships and other components, which will allow us to start fresh from a solid foundation.