Hahnemann operator bid procedures OK’d for St. Christopher’s sale

By Caroline Salls

Pittsburgh, July 26 – Center City Healthcare, LLC, which does business as Hahnemann University Hospital, received court approval of the bid procedures for the proposed sale of all or substantially all of the assets of St. Christopher’s Healthcare, LLC, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

While the operations of the St. Christopher’s entities remain stable at this time, Center City said it recognizes that uncertainties and costs inherent in the bankruptcy process, as well as financial constrictions imposed by restrictive vendor terms and proposed debtor-in-possession financing and cash collateral budgets, could create challenges and/or disruptions in the St. Christopher’s entities’ operations.

To avoid any risk of these disruptions, Center City said it needs to act as quickly as possible to establish a sale process. The company is proposing a process under which the sale would close by Oct. 4.

Under the approved procedures, bids are due by 4 p.m. ET on Sept. 16.

If a stalking horse bidder is selected, competing bids must at least equal the amount of that bid, plus the amount of any bid protections offered to a stalking horse bidder and a $500,000 minimum overbid amount.

An auction will be held on Sept. 18, if necessary. The sale hearing is scheduled for Sept. 23.

Center City is a Philadelphia-based hospital operator. The company filed bankruptcy on June 30 under Chapter 11 case number 19-11466.

© 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.