TLC?granted credit from Brooks; clinics lease postponed

A hearing Wednesday at the U.S. Bankruptcy Court in Buffalo resulted in more funds being granted to allow Lake Shore Hospital to remain open.

According the Chief Judge Carl L. Bucki’s Judicial Assistant Marcia Bannister, TLC Health Network was allowed to draw credit from two sources.

“The motion to draw credit from Brooks (Memorial Hospital) was granted and an order has been submitted which will probably be signed Friday. Credit from the Dormitory Authority (of New York state) was also approved on an interim basis until it is finalized on March 10,” Bannister explained.

Information on the amount of credit TLC was able to borrow was not available Wednesday afternoon. The emergency loan from DASNY was secured by State Senator Catharine Young for up to $1 million. After the last hearing on Feb. 3, Judge Bucki’s Legal Clerk Adolph Iannaccone said the hospital only intended to borrow $500,000 from DASNY.

Iannaccone was not available for comment Wednes-day.

According to Bannister, the other motion up for consideration, allowing Brooks to lease the Gowanda and Forestville clinics, was adjourned until Feb. 24 at 10 a.m. No reason was given Wednesday for this action.

Lake Erie Regional Health System Interim CEO Gary Rhodes previously told the OBSERVER, Brooks is interested in leasing the article 28 classified clinics to keep them open in the event Lake Shore closes or is sold and does not remain an article 28 hospital. Scott Butler, divisional director of business development for TLC Health Network, had explained even if the bankruptcy court were to allow it, the TLC board would still have to approve the measure.

Lake Shore Hospital submitted a closure plan to the New York State Health Department in October and later in December filed for Chapter 11 bankruptcy. No closure date has been set and hospital officials have expressed a desire to keep the facility open for a seamless sale. Bannister said the next hearing for TLC will be on Feb. 24.