Verity Health receives $610 million stalking horse bid from KPC Group

Chicago, Jan. 16 – Verity Health System of California, Inc. filed a motion in the U.S. Bankruptcy Court in Los Angeles seeking court approval to initiate a sale process of Verity Health’s four remaining hospitals to KPC Group for a $610 million stalking horse bid, according to a press release.

Verity Health has requested court approval of an orderly sale process where other potential buyers may submit qualified competing bids against the stalking horse bid. The winning bid, as selected by the Verity Health board of directors, in consultation with its professional legal and financial advisors, is subject to the approval of the bankruptcy court, and, depending on the buyer, the California Attorney General.

The offer is for the facilities and related assets of St. Francis Medical Center in Lynwood, St. Vincent Medical Center in Los Angeles, Seton Medical Center in Daly City and Seton Coastside in Moss Beach. All six hospitals now have a potential buyer or an approved buyer.

Verity is a Los Angeles-based nonprofit health care system. The company filed bankruptcy on Aug. 31 under Chapter 11 case number 18-20151.

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