Sears Methodist court allows $20 million sale of subsidiary assets

By Kali Hays

New York, Feb. 4 – Sears Methodist Retirement System, Inc. received approval of a $20 million sale of substantially all assets of subsidiary Sears Tyler Methodist Retirement Corp. to ER Propco Co., LLC, according to a Feb. 3 order from the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, ER was the stalking horse bidder for the assets, but a Jan. 21 auction did not yield a higher or better offer.

Competing bids for Sears Tyler were required to be a minimum of $21 million.

If ER had not been the prevailing bidder, the company would have been entitled to a $600,000 breakup fee and reimbursement of up to $50,000 in expenses.

The sale is expected to close on or before Feb. 27 according to the order.

Sears Methodist is a Dallas-based nonprofit senior living provider that filed for bankruptcy on June 10, 2014. The Chapter 11 case number is 14-32821.

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