New Jersey Gov. Chris Christie has said he will pledge $5 million in state funds to help entice reluctant creditors involved in bankruptcy negotiations with Hoboken (N.J.) University Medical Center, according to a Statehouse Bureau report.
Gov. Christie's offering followed the Hoboken City Council's rejection of a $5 million bond deal to appease creditors, who are owed roughly $34 million from the hospital. Clearing costs with creditors is necessary before HUMC can be sold to the investor group that owns Bayonne (N.J.) Medical Center. Soon after the rejection, Hoboken Mayor Dawn Zimmer said the hospital would surely close.
Gov. Christie has blamed unions for the hold-up. He also said the state needed to intervene because 1,300 jobs would be lost if the hospital closed and the city would face unbearable payments on $52 million in bonds that it guaranteed when it bought the hospital in 2007.
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Gov. Christie's offering followed the Hoboken City Council's rejection of a $5 million bond deal to appease creditors, who are owed roughly $34 million from the hospital. Clearing costs with creditors is necessary before HUMC can be sold to the investor group that owns Bayonne (N.J.) Medical Center. Soon after the rejection, Hoboken Mayor Dawn Zimmer said the hospital would surely close.
Gov. Christie has blamed unions for the hold-up. He also said the state needed to intervene because 1,300 jobs would be lost if the hospital closed and the city would face unbearable payments on $52 million in bonds that it guaranteed when it bought the hospital in 2007.
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Former Attorney Steps Down, Says City of Hoboken Purposely Drove Hospital Into Duress