Pineville Hospital now in the hands of First State Bank of the Southeast
From WRIL -
In the on-going struggle to find a resolution to the bankruptcy proceedings and subsequent operation of the Pineville Community Hospital, an entity that has been in the background has come out as the winning bidder for the hospital's assets. That is First State Bank of the Southeast.
The bank has released a statement to WRIL with the progress and plans for the facility.
"First State Bank of The Southeast, with nine branch offices in Pineville, Middlesboro, Williamsburg, Lexington, and New Tazewell, Tenn, has placed the winning bid for all assets of Pineville Community Hospital. The closing of the sale will take place over the next weeks as formalities are observed with the bankruptcy court.
First State has a long history of acting as a lender to the hospital and has closely monitored developments as the hospital suffered a decline in recent years and ultimately filed for bankruptcy protection. Following that filing, First State has been on the forefront of financial negotiations to help supply capital needs to keep the hospital open. During that process, both First State, and fellow lender Kentucky Highlands Investment Corporation, voluntarily agreed to permit $800,000 in liens to be placed ahead of their own liens in order to keep the hospital operating.
First State’s CEO Katherine Reese and her team have worked tirelessly throughout the bankruptcy process to help preserve the hospital as an integral part of the community, and to continue the tradition of community-minded lending and service that has been the hallmark of First State since the founding of First State Bank in downtown Pineville in 1899. Katherine would like to thank Pineville Mayor Scott Madon for his steadfast commitment to seeing this transition through to assure the viability of the hospital.
First State is excited to take on the challenge of operating a healthcare facility in Pineville, and is already taking steps to put together an experienced and respected team to manage day to day operations of the hospital, and to create a positive, fiscally responsible, and service oriented culture which will assure the hospital’s existence for decades to come."