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Sears Methodist bid procedures for $62.5 million in asset sales OK’d
By Kali Hays
New York, Dec. 26 – Sears Methodist Retirement System, Inc. received approval of bid procedures for the sale of substantially all the assets of four subsidiaries in two groups totaling $20 million and $42.5 million, according to separate Dec. 24 orders from the U.S. Bankruptcy Court for the Northern District of Texas.
As previously reported, 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.
Under the approved stalking horse agreements, if Yellow Rose is not the high bidder for the sale of the three debtors’ assets, it will receive a $1.2 million breakup fee and reimbursement of up to $100,000 of its expenses. Meanwhile, ER Propco would receive a $600,000 breakup 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 is 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.
A hearing to approve the sales is scheduled for Jan. 23.
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.
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