Hills Center for Nursing & Rehabilitation filed for bankruptcy on Jan. 2 after receiving a temporary restraining order from the state.

Meanwhile, the New York Attorney General's Office has argued a state court case involving the potential evacuation of the Woodbury facility's more than 300 residents should proceed Monday despite the federal filing.

The bankruptcy filing is the latest attempt by Cold Spring Hills’ owners in recent weeks to keep the nursing home afloat. The owners have raised alarms about the nursing home’s financial losses over the past year, which they say stem from a sprawling state fraud investigation and declining patient admissions.

The nursing home says it needs bankruptcy protection so it can reorganize and pay down its more than $50 million debt to creditors.