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Nurse’s union delays settlement agreement going outside creditors committee with complaint

If there was any question what’s the hold up in the creditors committee settlement, the hospital nurse’s union JNESO just cleared up the matter for everyone.  To this point the unions denied they were the logjam but one is going public, and solo to complain about monies owed – outside of the thousands of others owed roughly $34 million on the creditors committee.

According to their announcement touted in a NJ.com story, the bankruptcy hearing has been postponed until October 4th.  The original story states:

Virginia Treacy, the JNESO Executive Director, a hospital union whose employee trustee is on the creditors committee and represents registered nurses at HUMC, confirmed that no progress has been made since they last met on Friday.
The story notes Treacy complains there is $3.4 million in unused sick, vacation and holiday time owed among other items.  In addition, a temporary pay cut two years ago to keep the hospital afloat was never reinstated earlier this year, even with an arbitration in the union’s favor that preceeded the bankruptcy action by the hospital.
Virginia Treacy speaking at the hospital public hearing at OLG.  Back then a million dollar loss “was nothing.”  She now calls the Hospital Authority “morally bankrupt” for its management structure keeping the union from obtaining monies owed to it.
JNESO holds one seat on the seven board creditor committee.  Bankruptcy proceedings do not require in the end unanimous agreement of the thousands of creditors an in this case but a judge is likely to urge a settlement among the parties before acting to exclude one or two and move on the sale unless there is a filed objection.
Even without a filed objection by any of the creditors, the next hearing is pushed out to early October, days before the hospital runs out of money.
Mayor Zimmer is quoted in a revised story saying the vacation of the judge coincides with the new hearing date.  The original story quotes Treacy as saying there was “no progress” in a settlement but has now been changed to saying “no agreement.”
MSV is going with the first version that featured only the union and no comment from Mayor Dawn Zimmer.
Talking Ed Note: Since MSV doesn’t have a handy bankruptcy attorney available tonight, we’ll await some of the finer points on the hospital saga.  At least what has been whispered on the settlement delay is now front and center for the public to see and judge for themselves.

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