The MCDH Blog

MCDH Board Passes Resolution to Enter Into Mediation with Creditors
—Posted Saturday, April 14th, 2012 at 2:15 pm—
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On Friday, April 13  the MCDH Board of Directors met and passed MCDH Board Resolution Number 2012-3.  This resolution begins a 60-day Mediation Process between Mendocino Coast District Hospital and it’s creditors.   The passage of this Resolution does not mean that MCDH will be filing for bankruptcy protection.  It is not the wish or desire or intention of MCDH to file for bankruptcy.  We plan to use this State mandated step for the purpose that it is intended for, to continue (with the assistance of a Mediator) to reach an agreement with our employees that would assist our hospital in returning to profitability.  UFCW is the only creditor that we plan to mediate a settlement with.  MCDH is confident that it can continue to do business with it’s other creditors without the assistance of a mediated settlement.  In the event that MCDH and UFCW are unable to reach a mediated settlement, yesterday’s Board Resolution would ultimately allow MCDH to file for a Chapter 9 Bankruptcy.  However, I would like to emphasize again that this is not the intention of Mendocino Coast District Hospital.  It could occur if nothing else is successful in improving MCDH’s profitability.  We need to do everything possible to ensure the survival of Mendocino Coast District Hospital even if it means a bankruptcy filing in order to restructure debt.

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