KidsPeace Children's Hospital Inc. of Schnecksville, Pa., looking to pare bond debt from $51.3 million to $24 million, filed a voluntary Chapter 11 bankruptcy petition.
Affected are general revenue bonds that the Lehigh Valley General Purpose Authority issued in 1998 and 1999, according to a filing with the U.S. Bankruptcy Court for the Eastern District of Pennsylvania in Reading.
Hospital officials are also negotiating with Pension Benefit Guaranty Corp. a reduction in more than $100 million in pension liability "to an amount that the Debtors can reasonably expect to satisfy," chief executive William Isemann said in the filing.
The hospital reported $1 million to $10 million in assets and $100 million to $500 million in liabilities in its May 21 filing.
KidsPeace, founded in 1882, operates a psychiatric hospital in Orefield, Pa. and provides psychiatric services to youths in 10 states plus the District of Columbia.
UMB Bank of St. Louis is the trustee.
