Hawaii Medical Center files for bankruptcy

HONOLULU (AP) - Hawaii Medical Center is filing for Chapter 11 bankruptcy protection because one of its lenders refused to extend existing loan agreements.

The company says the move will ensure it's able to continue to operate its hospitals as usual.

Hawaii Medical Center owns and operates two hospitals on Oahu it took over from St. Francis Health Systems early last year.

They are Hawaii Medical Center-East in Liliha and Hawaii Medical Center-West in Ewa Beach.

The company's chief executive officer Dr. Danelo Canete says Hawaii Medical Center faced a threat that its lenders would freeze its cash, creating a liquidity crisis that would force the hospitals to shut down.

He vowed to reform the company so it is financially secure.