Victory Memorial Hospital sets bid procedures for $40 million asset sale

By Caroline Salls

Pittsburgh, Feb. 7 - Victory Memorial Hospital requested court approval of the bidding procedures for the proposed $40 million sale of some of its assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

Holy Family Home is the stalking horse bidder.

Victory Memorial said the asset sale is the final stage in implementing the New York State Commission on Healthcare Facilities in the 21st Century's recommendation that the hospital be closed.

The assets being purchased include the hospital's Brooklyn, N.Y., real property, Victory Memorial Hospital's 150-bed skilled nursing facility, the Victory Memorial Hospital Long Term Home Health Care Program and related equipment and assets.

If Holy Family is not the high bidder, Victory Memorial will pay it a $400,000 break-up fee.

Competing bids will be due at noon ET on March 10, and all bids must include a $1.5 million deposit.

Initial overbids must be for at least $500,000 more than the stalking horse bid, and subsequent overbids must be for at least $100,000 more than the previous bid.

The auction will be held March 13, and the hospital is asking the court to schedule the sale hearing for March 20.

A hearing on the bid procedures is scheduled for Feb. 21.

Victory Memorial, a Brooklyn, N.Y.-based hospital, filed for bankruptcy on Nov. 15, 2006. Its Chapter 11 case number is 06-44387.

© 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.