Saint Vincents Catholic Medical Centers preps for $34 million sale of Staten Island property

By Lisa Kerner

Charlotte, N.C., June 10 - Saint Vincents Catholic Medical Centers of New York asked the court to approve bid procedures for the sale of debtor Sisters of Charity Health Care System Nursing Home, Inc. d/b/a St. Elizabeth Ann's Health Care & Rehabilitation Center to SV Operating Three, LLC for $34 million or to the highest bidder at auction.

The company also asked the court to approve the assignment of the lease of land, building and equipment related to the debtor's Bayley Seton Campus to SV Land I, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

St. Elizabeth Ann's includes a skilled nursing and residential health care facility located on Staten Island, New York.

The debtors currently have no operations at Bayley Seton Campus, located adjacent to St. Elizabeth Ann's, but have leased the premises to Richmond University Medical Center. Subject to the auction process, the Bayley Seton Campus will be subject to a put option and a call option that will allow the transfer of the campus to the purchasers for a purchaser price of $1.00.

A hearing to approve the bid procedures is set for June 30.

The debtors accepted a joint offer from SV Operating Three and SV Land Three to act as a stalking horse bidder in the sale of the nursing home assets and entered into asset purchase agreements.

According to the filing, the agreements are subject to several conditions, including approval of the debtors' ability to enter into a receivership agreement, and approval of a break-up fee of $680,000.

Bids must in increments of $50,000.

Bids will be due July 15 and an auction, if necessary, will be held on July 19.

A sale hearing will be held on July 21.

Saint Vincents, a New York-based health care system, filed for bankruptcy on April 14, 2010. Its Chapter 11 case number is 10-11963.

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