New LifeCare asset sale procedures approved; auction set for Aug. 6

By Caroline Salls

Pittsburgh, June 27 – Hospital Acquisition LLC, which operates numerous New LifeCare and LifeCare medical facilities, obtained court approval of the bid procedures for the proposed sale of its assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The procedures give the company the right to enter into a stalking horse bid. Any break-up fee to be paid to such a bidder if it is not ultimately the high bidder would be limited to 3% of the purchase price, and expense reimbursement would be limited to $250,000.

Under the court approved procedures, bids are due by 5 p.m. ET on Aug. 1.

An auction will be held on Aug. 6, if necessary, and the sale hearing is scheduled for Aug. 13.

LifeCare, a Plano, Texas-based health care consulting and management services company, filed for bankruptcy on May 6. The Chapter 11 case number is 19-10998.

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