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Trustee Recovers 10M Toward Northern Berkshire Healthcare Debt

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The trustee overseeing the bankruptcy of Northern Berkshire Healthcare so far has recovered roughly $10 million against more than $35 million in secured debt, according to filings at the U.S. Bankruptcy Court, The Berkshire Eagle reported yesterday. The collections were included in documents filed by bankruptcy trustee Harold Murphy and his company, Murphy & King, who are seeking compensation for their work on administering the bankruptcy process on behalf of the court. The trustee is seeking, including expenses, fees and commission, more than $1 million for the work completed since the March 28 closing of the North Adams Regional Hospital and the subsequent filing for chapter 7 by its parent company, Northern Berkshire Healthcare. The hospital closed with three days’ notice March 28, giving its 530 employees little time to prepare for the loss of their jobs, and patients little time to seek medical services elsewhere. In August, the former NARH facility and assets were sold for $4 million to Berkshire Medical Center with the approval of the bankruptcy court. The trustee is also seeking $108,510 in fees and more than $5,000 in expenses for accounting services provided by Verdolino & Lowey. The court has set a hearing for the motion on Dec. 18 at the federal court in Worcester, Mass.

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