Johnson Memorial Corp. today announced that it has officially emerged from Chapter 11 bankruptcy protection.
JMC, which the parent company of Stafford Springs-based Johnson Memorial Hospital, is now operating under a reorganization plan, that will include a rebranding strategy and a rewriting of the community health care organization’s bylaws.
As part of the effort, the health care provider will rename itself “Johnson Memorial Medical Center.”
JMC’s other subsidiaries include Evergreen Health Care Center, Home & Community Health Services, Johnson Occupational Medicine Center, Wellcare, Johnson Development Fund and two affiliated medical practices: Johnson Professional Associates and Johnson Medical Specialists.
The Hartford Business Journal reported in August that Johnson Memorial was preparing to exit bankruptcy as an independent organization.
JMC filed for Chapter 11 protection in November 2008, and incurred professional and other fees of approximately $8.5 million through June 2010.
Under the reorganization plan, unsecured creditors, including the Pension Benefit Guarantee Corporation, will be paid at least $9.3 million over five years, of which about $1.5 million of will be paid immediately.
Peter J. Betts, who has been interim president and Chief Executive Officer, has agreed to remain at the helm on a full-time basis. The interim Chief Operating Officer, David Morgan, has also dropped the “interim” from his title and is now a full-time employee of the organization.
