The Brownsville Herald reported Brownsville Doctor’s Hospital filed for Chapter 7 bankruptcy on Dec. 11, 2013, halting a civil lawsuit filed against it by Key Equipment Finance. According to the report, Key Equipment Finance filed an emergency motion for relief from that automatic stay so it can repossess the equipment that it believes is currently in the vacant hospital. But, according to the report, Cameron County has a lien against that equipment and it filed a motion seeking to intervene in Key Equipment Finance’s motion.

Key Equipment Finance filed suit in November 2013 seeking $2 million from Brownsville Doctor’s Hospital for its obligations stemming from a 2007 deal with the company to purchase and lease medical equipment and software. KEF seeks termination of the automatic stay to allow KEF to repossess and sell its collateral, and seeks to recover its costs and attorney’s fees to the extent allowed by law, its motion states.

The Brownsville Herald report also cites that Wells Fargo Equipment Finance filed a motion seeking to join in Key Equipment Finance Inc.’s motion for emergency relief from the automatic stay. Brownsville Doctor’s Hospital owes it $468,458.33 as the result of another civil lawsuit against the hospital.

A United States bankruptcy judge ordered a hearing on the motions and scheduled it for Jan. 22 at 9 a.m. in U.S. Bankruptcy Court in McAllen.

To read the full Brownsville Herald report, click here.