HOBOKEN, N.J. (CBSNewYork/AP) — It appears New Jersey’s oldest hospital will stay open.

Hoboken Mayor Dawn Zimmer said Hoboken University Medical Center and a committee of creditors reached a last-minute agreement.

The deal paves the way for the sale of the hospital to the ownership group of the Bayonne Medical Center that wants to convert it into a for-profit facility.

The hospital filed for bankruptcy protection in August.

The city decided to sell the hospital earlier this year, fearing the city would have to cover a $52 million bond.

Zimmer issued a statement saying the settlement is a victory for taxpayers and the hospital’s 1,200 employees.

Founded in 1863 by Franciscan Sisters of the Poor, the hospital was pressed into service during the Civil War caring for soldiers and again during World War I.

Share your thoughts on this story in the comments section below…

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)