Pressed by a deadline to appoint a new chief restructuring officer by March 31 set by a court order allowing it to access cash, Interfaith Medical Center is seeking bankruptcy court approval to name John Leech its new CRO.
He would succeed Corbett Price, president of Kurron Shares of America. The CRO's role is to shepherd Interfaith's management, trustees and bankruptcy professionals through the Chapter 11 restructuring process.
The hospital also seeks to hire Gordian-Dynamis Solutions as restructuring consultant. Mr. Leech will be paid $500 an hour. Consultants from Gordian-Dynamis will earn $150 to $650 an hour.
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Interfaith and its creditors had hoped to have a CRO in place by March 4 so that the hospital would be in compliance with its memorandum of understanding with Brooklyn Hospital, which the court approved on March 18.
But negotiations in selecting a CRO took longer than expected. The remainder of the Kurron management team, including Interfaith President Luis Hernandez, will keep their positions at the hospital. They are charged with running Interfaith's daily operations, including the fallout from the murder this week of a patient in its psych ward by a fellow patient.
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Mr. Leech is a principal of Dynamis Advisers and an independent contractor of Gordian-Dynamis, a joint venture formed by Dynamis and the Gordian Group this month to provide restructuring services to the health care and education sectors.
Interfaith described Mr. Leech, a lawyer, as experienced in integrating hospitals with "other community assets," and said he has been a hospital trustee for more than 30 years, including the past chairman of the Cleveland Clinic Children's Hospital for Rehabilitation.
His main goal is to develop a confirmable Chapter 11 plan, without duplicating the ongoing roles of the Kurron management team still in place at Interfaith.
