Calais Regional Hospital (Maine) to be temporarily bankrupted in an effort to qualify for a Paycheck Protection Program loan under the Aid, Relief and Security Act against coronaviruses.
Calais Regional has requested at least $ 1.5 million in PPP funding, but was turned down due to a rule that does not allow bankrupt hospitals to receive the funds, according to the Bangor Daily News. Several rural hospitals, including Calais Régional, sued in April against the United States for preventing financially troubled companies from accessing loans, but a bankruptcy judge dismissed their lawsuits. In June, a US appeals court ruled in another case, bankrupt hospitals are not eligible for PPP loans.
Now the hospital has asked a judge to dismiss his Chapter 11 bankruptcy filing request at least $ 1.8 million in PPP funding, depending on the Bangor Daily News. If the hospital can come out of bankruptcy, the First National Bank has agreed to give the hospital a PPP loan. After securing the loan, the hospital would then renew the Chapter 11 bankruptcy proceedings, according to court documents cited in the report.
The hospital went bankrupt with approximately $ 25 million in debt. He received at least $ 3.7 million in other federal relief during the pandemic.
Read the full report here.