In a high-stakes courtroom showdown, Cold Spring Acquisition LLC, the bankrupt operator of Cold Spring Hills Center for Nursing & Rehabilitation, won crucial approval Thursday for the sale of its embattled 588-bed facility—halting a pending closure that could have displaced hundreds of elderly residents.
A New York bankruptcy judge gave the green light for the sale after a major roadblock—a fierce dispute with a healthcare workers’ union—was resolved, paving the way for 378Sywood LLC to take over operations.
A Race Against Time to Prevent Collapse
U.S. Bankruptcy Judge Sean H. Lane approved the receivership agreement and sale motion, setting the stage for Sywood to assume control of the Woodbury, New York-based nursing home. Initially, the sale seemed doomed after 1199SEIU United Healthcare Workers East objected to the deal in late January. The union raised alarms that Sywood’s proposed changes to an existing collective bargaining agreement—including new worker classifications, benefits reductions, and canceled wage increases—could trigger mass resignations or disruptive organizing activity.
Faced with mounting financial losses and an unresolved labor dispute, Cold Spring announced in February that the sale had collapsed and sought court approval to shut down the facility.
