Mercy Iowa City’s proposed bid procedures draw U.S. trustee objection

By Sarah Lizee

Olympia, Wash., Aug. 24 – Mercy Iowa City’s proposed bid procedures for its assets drew an objection from Region 12 U.S. trustee Mary R. Jensen, according to documents filed with the U.S. Bankruptcy Court for the Northern District of Iowa, according to a motion filed Wednesday.

As previously reported, the University of Iowa has offered to serve as stalking horse bidder for all the operating facilities and key assets of the debtor’s hospital for a purchase price of $20 million and assumed liabilities.

Under the proposed bid procedures, the bid deadline would be 6 p.m. ET on Sept. 19, an auction would be scheduled for Sept. 22, and a sale hearing would take place on Sept. 27.

Jensen said she objects to the current lack of evidence of prior marketing, which is necessary to justify the shortened timeframe for the sale.

She also said there is a potential for bid chilling based on the scope and cumulative effect of the various stalking horse protections.

The Iowa City-based hospital filed Chapter 11 bankruptcy on Aug. 7 under case number 23-00623.

© 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.