Elements Behavioral Health secures approval of asset sale procedures

By Caroline Salls

Pittsburgh, June 14 – Elements Behavioral Health obtained court approval of the bid procedures for the proposed sale of substantially all of its assets to a group of its first-lien lenders, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The lenders are entitled to reimbursement of up to $325,000 in sale-related expenses if they are not the high bidder. The initial overbid protection amount will be $100,000.

Competing bids are due by 4 p.m. ET on July 16 and must at least equal the stalking horse bid, plus the amount of the expense reimbursement and a $150,000 minimum overbid.

An auction will be held on July 18, if necessary.

The sale hearing is scheduled for July 19. Closing will be subject to regulatory approvals.

Elements is a Long Beach, Calif.-based behavioral health company. The company filed bankruptcy on May 23 under Chapter 11 case number 18-11212.

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