Gilbert (Ariz.) Hospital filed for Chapter 11 bankruptcy protection this month after one of its lenders seized more than $1 million from the cash-strapped hospital.
Stillwater Bank, one of Gilbert's major creditors, exercised its right to sweep the hospital's operating account of approximately $1.1 million, said Pernell McGuire, the hospital's bankruptcy attorney. That occurred Feb. 3 and 4, and by Feb. 5, with no operating capital to cover its expenses, Gilbert filed for bankruptcy protection on an emergency basis.
The filing shows hospital liabilities between $1 million and $10 million. And although assets are reported at less than $50,000—because the hospital didn't file an asset schedule with the emergency bankruptcy petition—McGuire said assets are actually estimated to be more than $10 million.