A federal bankruptcy judge has approved an emergency loan to help Montgomery-based Jackson Hospital continue operations through the holiday season, according to a report from AL.com. The hospital’s debtor-in-possession financing was increased from $22 million to $35 million following the court’s Oct. 14 ruling.
According to Jackson Hospital’s Chief Restructuring Officer, the new funding should support the hospital through Thanksgiving and Christmas. The approval follows the Montgomery City Council’s Oct. 7 vote to pass a nonbinding resolution expressing support for potential aid to Jackson Hospital, pending further due diligence and a formal agreement.
Jackson Hospital, which filed for Chapter 11 bankruptcy protection in February, had warned earlier this month that it could face closure without a $20 million loan to cover operating expenses and payroll. Its lender, Jackson Investment Group, told AL.com it would commit an additional $15 million, pending court approval, to sustain operations into February 2026 while a reorganization plan is finalized.
Resource: Judge OKs Alabama hospital loan lifeline