BRUNSWICK — Parkview Adventist Medical Center, which filed for Chapter 11 bankruptcy protection June 15, owes upwards of $13 million to Central Maine Healthcare Corp. and its affiliate, Central Maine Medical Center, court documents show.
Just how much of that money CMHC will see, however, remains unclear.
Parkview contends that CMHC does not have an enforceable security interest in its assets, including court-approved cash collateral, because a proper security interest wasn’t transferred by Parkview’s board of directors, as required by state law.
Parkview has almost $18.5 million in assets, according to court papers. It listed liabilities of $25 million.
But CMHC argues that its repayment is protected by certain 7-year-old “security documents.” These documents include mortgage deeds, security agreements and financial statements related to Parkview’s properties in Brunswick.
According to CMHC’s objection to Parkview’s motion to use cash collateral, which was granted on a interim basis by U.S. Bankruptcy Court Judge Peter Cary in Portland on June 18, Parkview owes CMHC almost $7 million for what’s left on a promissory note and under numerous contracts between Parkview and Central Maine.
They owe the affiliate, Central Maine Medical Center, almost another $7 million from contracts with the Lewiston hospital.
But according to a schedule of unsecured non-priority claims filed by Parkview’s attorneys on July 6, Parkview only owes CMMC just over $6 million.
Parkview has long contracted for CMHC services, with the Lewiston-based company even making an unsuccessful takeover attempt in 2013.
Parkview’s pre-packaged bankruptcy plan relies on a proposed reorganization and takeover by Brunswick-based Mid Coast Health Services. Mid Coast also made an unsuccessful takeover attempt in 2013 after CMHC filed theirs.
On the day Parkview filed its petition for bankruptcy protection, the hospital immediately terminated its contract for emergency services with Central Maine and signed on with Brunswick-based Bluewater Emergency Partners.
Parkview closed its emergency and acute inpatient care departments on June 18. Patient volume has since been transferred to Mid Coast Hospital.
Although CMHC does not have the only unsecured non-priority claim, it holds by far the largest. Other unsecured claims range from the $120 owed to Chad Little Outdoor Power Equipment in Brunswick to the $995 owed to Civco Medical Solutions of Atlanta.
CMHC Spokesman Chuck Gill said last month that his organization’s leadership had no knowledge of the bankruptcy plan until it was filed, and they were alerted to the filing by email from their own employees working at Parkview.
He said they would be reviewing all contracts and legal options to “protect the interests of Central Maine Healthcare.”
A final hearing on Parkview’s bankruptcy plan is scheduled for July 27 in Portland.