University Medical Center and El Paso Children's Hospital were in court yesterday, and the judge shot down both of their requests about how to pull Children's out of bankruptcy.

Children's had been given until September 15th to file paperwork on their reorganization plan, but they asked for an extension until January. The judge said 'no' because Children's is running out of money and it is not feasible for them to delay further on getting that reorganization plan in place.

UMC has a plan that they wanted to present, but the judge said 'no' to that as well. He softened that denial a bit by saying UMC's plan isn't that good, but at least they have a plan.

Part of UMC's plan calls for using whatever money Children's has left to pay their creditors. Children's would be absorbed into the County and UMC would then appoint a board.

Children's still has 30 days to bring a plan to the judge. After it is filed and accepted by the court, their creditors have until November 16th to accept or reject the plan. The next hearing in the case is set for August 31st.

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