Saint Vincents bid procedures for St. Elizabeth's sale OK'd, DIP amendment approved

By Lisa Kerner

Charlotte, N.C., June 30 - Saint Vincents Catholic Medical Centers of New York's bid procedures were approved, with some adjustments, for the sale of debtor St. Elizabeth Ann's Health Care & Rehabilitation Center to SV Operating Three, LLC for $34 million or to the highest bidder at auction, according to an attorney familiar with the case.

Bids are now due July 25, rather than July 15 and an auction, if necessary, will be held on July 28, instead of July 19.

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

As previously reported, 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.

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.

Court OK's DIP amendment

The court also approved a debtor-in-possession facility amendment that would extend the maturity of the loan to Dec. 31, 2011 from June 30, according to the attorney.

Also, the third amendment calls for changes to the DIP credit agreement to address treatment of the sale proceeds of collateral, reductions in availability as the DIP facility is repaid and the termination of the credit agreement once the sale proceeds of collateral are enough to repay the facility in full.

The company said as of July 1, the total commitments will be reduced to $50 million from $78 million, and, upon closing of a Manhattan real estate sale, the commitments will be further reduced to $22.5 million.

As previously reported, the amendment will give Saint Vincents access to funding as needed to wind down its Chapter 11 cases, sell its remaining assets and transfer remaining patient care services.

Saint Vincents, a New York-based health care system, filed for bankruptcy on April 14, 2010 with the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 10-11963.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.