Cheboygan hospital sale not complete

May 2, 2012

CHEBOYGAN, Mich. (AP) - A spokesman for the recently closed Cheboygan Memorial Hospital says its sale to Flint-based McLaren Health Care Corp. is moving toward completion.

McLaren's efforts to buy the hospital fell through a month ago because of problems obtaining necessary federal regulatory approval. The hospital closed April 3, idling about 400 workers.

But hearings Monday in federal bankruptcy court cleared the way for the sale to proceed. Services such as an emergency room could reopen.

Spokesman Mike Grisdale said Wednesday that paperwork and legal documents have been prepared but the deal still isn't final.

The hospital announced in March it was filing for Chapter 11 bankruptcy protection after losing more than $7 million in 2011.

McLaren has rehired about 50 people to work at the hospital's clinics in Cheboygan, Pellston and Petoskey.

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