Sevier County Judge Greg Ray reported Friday that the county received word that the hospital bankruptcy filing by De Queen Medical Center owner Jorge Perez on behalf of the hospital in Miami Division of the United States Bankruptcy Court for the Southern District of Florida, has been dismissed.
According to the county judge’s office, counsel for Perez conceded that under the Amended Order of Receivership, Perez did not have authority to file the bankruptcy proceedings and that only the receiver has the authority to file. The bankruptcy proceedings were dismissed without prejudice so as to allow the receiver to file bankruptcy, county counsel reported.
On March 28, the county and others owed money by the hospital, were given receivership by a Sevier County Circuit Court judge a day before the hospital’s Critical Access license was to expire. Rachael Mathison, the director of nurses at the hospital, was named receiver.
County attorneys sought to have the bankruptcy case moved to the Western District of Arkansas, prior to the case dismissal.
Perez owes the county $120,000 in back taxes and thousands more to employees who are owed as much as five weeks of back pay.
On the hospital’s bankruptcy, Perez listed assets between $1 million and $10 million and liabilities in the same range.
The hospital has not seen patients since February, according to Ray.