Hoboken mayor asking city to pony up for hospital bankruptcy settlement

Hoboken Mayor Dawn Zimmer is asking her colleagues on the city council to approve a bond ordinance of at least  $5 million so that the city can contribute to the bankruptcy settlement under negotiation with creditors of Hoboken Hospital.

In the letter sent to all council members, Zimmer said there is no guarantee that even with the assistance of the city that the hospital will be able to come to an agreement and stay open.

“The members of the Creditors Committee, PSE&G, Sodexo, Cardinal, Metassets and the Hospital’s two unions, 1199J and JNESO, will have to decide if this contribution by the City is sufficient to approve the sale and settlement agreement or whether they would prefer to see the Hospital close,” Zimmer said in the letter.

Should the council reject the bond ordinance or the creditors reject any settlement offer, Zimmer said the hospital will likely close next month.

The bankruptcy hearing has been postponed until Thursday to give the council time to vote on the bond.  According to the letter, the ordinance will come up for a vote Wednesday.

Monday, Councilwoman Beth Mason, who has opposed the deal to sell the hospital, said she would support a contribution from the city but demanded the inclusion of four stipulations, including a deed restriction on the hospital and the release of all depositions and records regarding the bankruptcy.

Mason said she was told her request would not fly but was not informed which ones were objectionable.

Creditors are reportedly demanding $10 million from the hospital in order to settle the bankruptcy claim. Last night, at least one of the creditors, PSE&G, reportedly broke from the committee of vendors seeking redress and filed an objection to the bankruptcy for the $5 million the utility company is owed by the hospital.

Hoboken mayor asking city to pony up for hospital bankruptcy settlement