Interfaith files for bankruptcy

December 3, 2012 Brooklyn Daily Eagle
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After several days of speculation, the troubled Interfaith Medical Center has filed for Chapter 11 bankruptcy protection\.

Interfaith, which is on Atlantic Avenue and serves Bedford-Stuyvesant and nearby Crown Heights, lists the State Dormitory Authority as its single-largest creditor, with more than $130 million in claims, according to the New York Times.

The hospital’s unsecured claims also include six malpractice settlements and one malpractice jury verdict ranging from $1.3 million to $7 million, according to the Times.

Interfaith officials have said that they need $20 million from the state to continue operating while they are reorganizing, and otherwise face the possibility that the hospital will close.

Interfaith was formed in the early 1980s from the merger of Brooklyn Jewish Hospital – itself bankrupt – with St. John’s Episcopal Hospital.