Monroe Hospital selects stalking horse as successful bidder for assets

By Kali Hays

New York, Oct. 16 – Monroe Hospital, LLC selected Prime Healthcare Services Monroe, LLC as the successful bidder for the sale of substantially all of its assets, according to a Wednesday notice with the U.S. Bankruptcy Court for the Southern District of Indiana.

Prime acted as the stalking horse bidder for the assets, and the only other qualified bid Monroe received by the Oct. 9 deadline came from Monroe Regional Hospital, Inc.

Monroe held an auction Oct. 13 and deemed Prime as the highest and best bid.

As previously reported, 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 entitled to any bid protections, expense reimbursement or a break-up fee under the stalking horse agreement.

Upon filing the bid procedures, 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.

A sale hearing is scheduled for Oct. 22.

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

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