Haven Healthcare granted approval of bid procedures for sale of all assets

By Caroline Salls

Pittsburgh, April 10 - Haven Healthcare Management, LLC received court approval of the bid procedures for the proposed sale of all of its assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Connecticut.

As previously reported, if Haven selects a stalking horse bidder before the auction, it will pay that bidder a 3% break-up fee if it ultimately is not the high bidder for the assets.

Also, if a stalking horse bid is selected, initial overbids must be for at least the sum of the stalking horse bid, the amount of the break-up fee and a $1 million overbid.

At the auction, each bid must be for at least $250,000 more than the previous bid.

Although the bid procedures were approved, Haven said it is in negotiations with its official committee of unsecured creditors on the possibility of entering into an asset purchase agreement "on terms so attractive that the committee and the debtors would be willing to forgo the auction."

The auction will be held May 14, and the sale hearing is scheduled for May 16.

The assets being sold include six owned and 19 leased facilities located in five states in New England, plus all of the assets owned or leased by the company at these facilities and Haven's corporate headquarters, including inventory, accounts, furniture, fixtures, equipment and trade names.

Haven, a Middletown, Conn.-based nursing home operator, filed for bankruptcy on Nov. 20. Its Chapter 11 case number is 07-32722.

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