Negotiations are underway for a resolution between the nonprofit that operates community health centers on Cleveland’s East Side and lender that sought to have Northeast Ohio Neighborhood Health Services Inc. taken over and run by a court-appointed receiver.
The back-and-forth started this spring when New Jersey-based lender All Pro Capital sued the nonprofit, known as NEON in federal court, for defaulting on an $11 million loan. The firm said NEON owed at least $8.8 million and failed to make required payments for seven months.
U.S. District Court Judge Christopher Boyko appointed John K. Lane of Inglewood Associates to run NEON in November. The nonprofit quickly asked Boyko to pause the order appointing a receiver so it could work on finding new financing. NEON argued in court filings that a receiver would “severely disrupt” the health care services the centers provide to the community. It appealed the judge’s order to a higher court, the Sixth Circuit Court of Appeals. That request was denied
Earlier this week, the parties together asked a judge to pause putting the chosen receiver in charge of the community health centers because they are in discussions to resolve the matter. The judge agreed and, according to the order, they’ll update the court on their progress weekly and All Pro Capital can, at any time, go back to the court and ask for the receiver to be appointed.
