St. Margaret's Health, which has been closed since June, filed two petitions of Chapter 11 bankruptcy for its St. Margaret's Spring Valley (Ill.) and St. Margaret's Peru (Ill.) facilities, Shaw Local News Network reported Sept. 1.
The health system reported that it had at least 1,000 creditors who are owed somewhere between $10 million and $50 million. Peoria, Ill.-based OSF Healthcare received approval to take over the Peru facility.
Filing for bankruptcy will allow OSF to begin the purchasing process. So far, OSF has hired more than 320 former St. Margaret's employees.