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Life Care St. Johns $24.45 million sale agreement terminated by buyer
By Caroline Salls
Pittsburgh, Jan. 10 – Life Care St. Johns, Inc.’s asset purchase agreement has been terminated by purchaser LCS Glenmoor, LLC, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the Middle District of Florida.
According to the termination letter from LCS Glenmoor assignee Glenmoor Propco Ventures, LLC executive vice president Kendall Young to Life Care chief executive officer D. Bruce Jones, the purchase agreement was terminated after the company failed to respond to a request by the buyer to extend the closing date.
Young said Glenmoor received a revised draft of a consent order from the Florida Office of Insurance Regulation (OIR) on the day before the outside closing deadline of Dec. 22, but that draft order “contained terms that were not acceptable.”
As a result, Young said Glenmoor informed Life Care that it had not received reasonable assurances from the OIR that it was prepared to approve the acquisition on the terms set in the purchase agreement. At that time, Glenmoor also requested the outside closing date extension.
Young said Life Care’s lawyers informed Glenmoor that they had been unable to get a response on the extension request from Life Care bondholders.
In addition, Young said Glenmoor remains “extremely interested in purchasing the Glenmoor Community” under a proposed third amendment to the purchase agreement that calls for an extension to the outside closing date.
As previously reported, Life Care St. Johns’ Chapter 11 plan of liquidation was confirmed in August after it received court approval in June 2016 to sell its Glenmoor facility in St. Johns County, Fla., to LCS Glenmoor for $24.45 million.
Life Care St. Johns is a St. Augustine, Fla.-based not-for-profit. The company returned to bankruptcy on April 11, 2016 under Chapter 11 case number 16-01347.
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