Dowling College OK’d to take bids for Oakdale campus; auction March 31

By Caroline Salls

Pittsburgh, Dec. 19 – Dowling College received court approval of the bid procedures for the proposed sale of its Oakdale, N.Y., campus, according to an order filed Friday with the U.S. Bankruptcy Court for the Eastern District of New York.

As previously reported, Dowling said no stalking horse bidder had been identified as of Nov. 29. However, it said it reserved the right to enter into a stalking horse purchase agreement in the future.

If a stalking horse bidder is selected, Dowling said it would pay it a breakup fee and expense reimbursement of up to 2% of the purchase price if it ultimately is not the winning bidder.

Judge Robert E. Grossman said in Friday’s order that he was not prepared at this time to consider the proposed bidding procedures, but, to the extent a stalking horse bidder is selected, the college can present a proposed form of agreement and related proposed bidding protections to the court that are necessary to induce the stalking horse bidder to complete the sale.

Bids are due by 4 p.m. ET on March 27.

An auction will be held on March 31, if necessary. Bids at auction must be made in minimum increments of $100,000.

The sale hearing is scheduled for April 10.

Dowling is based in Oakdale, N.Y. The college filed bankruptcy on Nov. 29 under Chapter 11 case number 16-75545.

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