Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Sears Methodist Retirement System, Inc. > News item |
Sears Methodist debtors seek approval of $62.5 million in asset sales
By Caroline Salls
Pittsburgh, Nov. 25 – Four Sears Methodist Retirement System, Inc. debtors requested court approval of the bid procedures for the proposed $42.5 million and $20 million sales of substantially all of their assets, according to two motions filed Nov. 24 with the U.S. Bankruptcy Court for the Northern District of Texas.
Three of the debtors, Sears Methodist Centers, Inc., Sears Permian Retirement Corp. and Sears Panhandle Retirement Corp., received a collective $42.5 million stalking-horse bid for their assets from Yellow Rose Health Holdings LLC, and debtor Sears Tyler Methodist Retirement Corp. secured a $20 million stalking-horse bid from ER Propco Co., LLC.
If Yellow Rose is not the high bidder for the sale of the three debtors’ assets, it will receive a $1.2 million break-up fee and reimbursement of up to $100,000 of its expenses. Meanwhile, ER Propco would receive a $600,000 break-up fee and reimbursement of up to $50,000 in expenses if it is not the high bidder for the Sears Tyler assets.
The bid deadline for both sales will be 5 p.m. ET on Jan. 19.
Competing bids for the assets of the three debtors must be for at least $44 million. Bids can also be made for each of the debtors’ individual assets. The auction will be held on Jan. 21, with minimum bidding increments of $400,000.
Competing bids for the Sears Tyler assets must be greater than $21 million. Minimum bid increments at the Jan. 21 auction will be $200,000.
Sears Methodist is a Dallas-based nonprofit senior living provider that filed for bankruptcy on June 10. The Chapter 11 case number is 14-32821.
© 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.