One of the state's oldest physician's clinics has filed for bankruptcy, saying it owes creditors more than $1 million.

The Honolulu Medical Group Inc. is petitioning to reorganize its finances under a Chapter 11 bankruptcy, which allows cash-strapped companies to come up with a plan to repay creditors.

"We just want to get through this process as expeditiously as possible," said Kimberly Rocha, Honolulu Medical Group president. She said there will be no disruption to medical care being provided patients and that operations will continue as normal.

The Honolulu Medical Group once claimed to be the state's largest multi-specialty clinic and traces its history back 106 years when it was founded as Hawaii's first physician group by Dr. James Judd and Dr. W.D. Baldwin, according to the group's Web site.

James Wagner, attorney for Honolulu Medical, said a plan is being formulated to deal with the outstanding debt.

Wagner said the group at one time had more than 40 physicians, but in recent years found that it had become an incubator for doctors who would build up their practice and move on. The group now has 11 physicians.

The financial problems are linked to this and rent it owes Queen's Development Corp.

Honolulu Medical had developed a building at the corner of South Beretania and Lusitana streets but in 2004 sold it to Queen's, Wagner said. The group now occupies part of a floor in what's been renamed as the Queen's Physician's Office Building III.

As doctors left the group it found itself with more space than it needed while back rent mounted, Wagner said.

The bankruptcy filing shows Queen's is owed $742,500 and is Honolulu Medical's largest creditor. Diagnostic Laboratory Services is second-largest with the group owing it about $137,000.

The group listed its assets as totaling $50,000 or less.