October 31, 2011 4:24 PM
DOUG SAUNDERS

VICTORVILLE • Victor Valley Community Hospital won a reprieve Monday when a judge rejected the state Attorney General’s attempt to block a stopgap financing plan that would keep the bankrupt hospital running, at least in the short term.

San Bernardino County Superior Court Judge Steve Malone denied the state Attorney General’s attempt to halt a $6 million financing and consulting agreement between Victor Valley hospital and Prime Healthcare Services. The two sides are set to return to Malone’s court Nov. 22 to debate a permanent order.

Also on Monday, U.S. Bankruptcy Judge Catherine Bauer approved the same financing and consulting plan that the hospital filed to save VVCH from being forced to close its doors.

“It is a great day,” said Lovella Sullivan, Victor Valley hospital spokeswoman. “It’s a very good thing not only for the hospital, but for the community as well.”

In 2010, Victor Valley Community Hospital filed for Chapter 11 bankruptcy protection from the more than $20 million of debt owed. On Oct. 20 Bauer approved the offer that the state attorney general’s office sought to end in Judge Malone’s courtroom Monday.

“The Attorney General’s office hasn’t come up with sufficient proof that shows a temporary restraining order is warranted in this case,” said Malone.