Pipeline Health System gets court approval of bid procedures

By Sarah Lizee

Olympia, Wash., Oct. 13 – Pipeline Health System, LLC received court approval of the bid procedures for its assets, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, before filing the Chapter 11 cases, the debtors negotiated a sale of their Illinois facilities to Ramco Healthcare Holdings, LLC, who in turn planned to lease the premises to Resilience Health to continue operations.

Ramco agreed to purchase the Illinois facilities’ underlying real estate for $92 million. In addition, Resilience agreed to take the equity interests in the entities operating the Illinois facilities under a membership-interest purchase agreement in exchange for the assumption of liabilities.

In the following weeks, however, the buyers indicated they were not able to close by the Aug. 30 deadline, and they terminated the asset purchase agreement.

The company said it is continuing to engage in negotiations with Ramco regarding the sale, as well as engaging with other potential buyers.

The bid procedures provide a longer runway for its California and Texas assets and a faster timeline for the Illinois assets.

Under the bid procedures, the deadline for Illinois-only bids is 5 p.m. ET on Oct. 31, and the Illinois auction will take place on Nov. 2. The deadline for any other bids is 5 p.m. ET on Nov. 29, and an auction will take place on Dec. 1.

A sale hearing for the Illinois assets will take place on Nov. 10, and the sale hearing for the other assets is slated for Dec. 9.

The company also received approval to choose one or more stalking horse bidders for the assets.

Pipeline Health System is an El Segundo, Calif.-based community-focused health care network. It filed bankruptcy on Oct. 2 under Chapter 11 case number 22-90291.

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