In a long anticipated move, St. Vincent's Hospital in Manhattan filed for bankruptcy Wednesday.

The petition reveals that the hospitals largest unpaid creditor is the Pension Benefit Guaranty Corporation, an arm of the federal government. St. Vincent's owes this agency $180 million. Despite this, hospital officials are confident that the pensions of their employees will not be affected.  

The hospital also owes a medical malpractice trust minor approximately $113 million.

Michael Fagan, a spokesman for the hospital, said that the bankruptcy filing will allow the hospital to continue caring for patients as it closes down.

At least $1 billion is owed to various creditors by the hospital, but it is likely that the number is much larger as the petition form only allows for a maximum of $1 billion to be checked off. 

Falling into debt and filing for bankruptcy can be a very public, ugly affair, even for prominent institutions. If you are facing financial difficulties and need legal counsel when it comes to filing for bankruptcy, contact the Galveston bankruptcy lawyers of Gipson, Norman & Root at 281-332-4800.