Monroe Hospital authorized to sell assets to Prime Healthcare Services

By Kali Hays

New York, Oct. 22 – Monroe Hospital, LLC won approval to sell substantially all company assets to Prime Healthcare Services Monroe, LLC from the U.S. Bankruptcy Court for the Southern District of Indiana on Oct. 22, according to an attorney familiar with the case.

As previously reported, Prime Healthcare acted as the stalking horse bidder for the assets, and the only other qualified bid Monroe received by the Oct. 9 deadline came from Monroe Regional Hospital, Inc.

Prime Healthcare’s purchase price does not include a cash or cash equivalent component, but instead the company will assume certain obligations of Monroe related to the hospital.

The obligations include a working capital advance, operating expenses, payroll expenses and obligations under certain contracts and leases, according to the motion.

Prime Healthcare is not entitled to any expense reimbursement under the stalking horse agreement.

Monroe, a Bloomington, Ind.-based hospital operator, filed for bankruptcy Aug. 8. Its Chapter 11 case number is 14-07417.

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