Astria Health sets sale procedures in case refinancing efforts fail

By Caroline Salls

Pittsburgh, Nov. 21 – Astria Health requested court approval of the bid procedures for the proposed sale of its assets, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Washington.

The company said in the motion that it is pursuing a sale of some or all of its assets “in recognition of the fact that refinancing may not be possible for some or all of the debtors and that, absent setting a sale process in motion, the debtors may not be able to execute a plan that provides for a successful resolution of these Chapter 11 cases.”

Astria said it is also still pursuing exit financing to allow the debtors to reorganize and confirm a plan of reorganization.

The company said it expects to identify one or more stalking horse bidders before the auction. If those bidders require the payment of bid protections, Astria will file a motion for approval of those protections before any auction is held.

Under the proposed procedures, bids would be due by 7 p.m. ET on Jan. 30.

An auction will be held on Feb. 5, if necessary. Bids at auction must be made in minimum increments of 3% or $250,000.

The company is asking the court to schedule the sale hearing for Feb. 13.

A hearing on approval of the bid procedures is scheduled for Dec. 5.

Astria Health is a Yakima, Wash., health care facility operator. The company filed bankruptcy on May 6, 2019 under Chapter 11 case number 19-01189.

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