Miami International Medical Center committee opposes financing, sale

By Caroline Salls

Pittsburgh, April 11 – Miami International Medical Center, LLC’s official committee of unsecured creditors objected to the company’s debtor-in-possession financing and asset sale procedures motions, according to Tuesday filings with the U.S. Bankruptcy Court for the Southern District of Florida.

The committee said in the DIP financing objection that lender Variety Children’s Hospital is also through an affiliate a 34.5% owner of Miami International, the company’s primary and largest secured creditor, a guarantor of pre-bankruptcy debt, the owner of the real property upon which Miami International’s facility sits and the company’s landlord.

In addition, the committee said Variety Children’s is the proposed stalking horse bidder in the asset sale, meaning its $30 million credit bid, if approved, “will leave nothing for any other constituent in this case, making this case run solely for the benefit of VCH.”

Since Miami International is a non-operational entity, the committee said it has failed to prove that the proposed DIP facility is of value to its bankruptcy estate “and worth its detrimental conditions that, among other things, are likely to chill bidding and ensure that the debtor's most valuable assets wind up with VCH without any opportunity for meaningful participation by the committee.”

In the bid procedures objection, the creditor group said the proposed procedures, sale motion and stalking horse purchase agreement “contain provisions that will either deter or hinder independent third party prospective bidders from meaningfully participating in the sale process.”

The committee said the court should order Miami International to amend its bid procedures to allow for a proper investigation period before approving the stalking horse agreement “and a skewed process that will flow from it absent a meaningful investigation by the committee.”

The Miami-based company does business as Miami Medical Center. The company filed bankruptcy on March 9 under Chapter 11 case number 18-12741.

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