The Pontiac City Council last week approved the sale for $2 million of the North Oakland Medical Center to a group of physicians who will operate the financially strapped facility as a private for-profit entity.

The approval allows the medical center to sever its costly lease with the city and reorganize its debt. Still unclear is the fate of roughly $38 million of outstanding debt issued in 1993. The hospital has defaulted on payments owed to the bond trustee to cover debt service.

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