Randolph Hospital seeks to cut purchase price for assets to $8.75 million

By Sarah Lizee

Olympia, Wash., April 29 – Randolph Hospital, Inc., which does business as Randolph Health, is seeking court approval to amend its asset purchase agreement with American Healthcare Systems, Inc. in order to lower the purchase price to $8.75 million from $18.5 million, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Middle District of North Carolina.

Randolph said its asset purchase agreement with American Healthcare Systems is conditioned on the debtors and Randolph County obtaining $20 million in funding through the North Carolina rural health care stabilization program.

Recently, the North Carolina local government commission informed the debtors that it would not be placing the debtor’s and county’s stabilization act funding application on its April 13 meeting agenda, and the commission has not otherwise set the stabilization act funding application for consideration at one if its meetings.

As a result, the debtors negotiated the proposed amendment, which removes the stabilization act funding contingency and lowers the cash purchase price.

Randolph said the amendment is in the best interests of the debtors’ estates because it removes uncertainty regarding the debtors’ ability to close the sale transaction, allowing the sale to proceed, thus preserving health care in Randolph County and avoiding potential further depletion of the debtors’ cash reserves.

A hearing is scheduled for June 4.

Randolph is an Asheboro, N.C.-based health care company. The company filed bankruptcy on March 6, 2020 under Chapter 11 case number 20-10247.

© 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.