Monroe Hospital sets procedures for asset sale, selects stalking horse

By Kali Hays

New York, Aug 22 – Monroe Hospital, LLC is seeking court approval of bidding procedures related to the sale of substantially all of its assets, according to a Friday motion with the U.S. Bankruptcy Court for the Southern District of Indiana.

The company also selected Prime Healthcare Services Monroe, LLC as the stalking horse bidder.

Under the stalking horse agreement, Prime’s purchase price does not include a cash or cash equivalent component, but instead the company will assume certain obligations of Monroe related to the hospital.

These obligations include a working capital advance, operating expenses, payroll expenses and obligations under certain contracts and leases, according to the motion.

Prime is not seeking any bid protections, expense reimbursement or a break-up fee.

Monroe said that after the sale is consummated, it intends to propose a plan of liquidation, convert the Chapter 11 case to a Chapter 7 case or seek a dismissal of the Chapter 11 case outright.

The bid procedures set an auction for the assets to take place Oct. 8 with a sale hearing to take place Oct. 17.

Any additional qualified bids must be entered by Oct. 6 and include a $50,000 cash deposit.

At auction, the company will determine an opening bid amount and subsequent bids must be made in increments of $200,000.

Monroe, a Bloomington, Ind.-based hospital operator filed for bankruptcy Aug. 8. Its Chapter 11 case number is 14-07417.

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