Green Valley (Ariz.) Hospital, which filed for Chapter 11 bankruptcy April 2017, is expected to emerge from bankruptcy status by the end of the month and name a new owner shortly after, according to Green Valley News.
Hospital management filed a motion Monday in Bankruptcy Court for the sale of hospital assets to Lateral GV, as a stalking horse bid of $28.5 million. A stalking horse bid is an initial offer on a troubled company's assets from an interested buyer selected by the distressed company. This bid from Lateral GV allows the hospital to avoid low bids on its assets.
Now that Lateral GV bid on the hospital's assets, other potential buyers may submit bids until Jan. 22. The hospital will hold an auction for its assets Jan. 25 and a sale hearing will take place Jan. 30. The sale of its assets will close March 31.
Selling its assets and changing its owner will help the hospital emerge from bankruptcy, which is a relief to staff, according to Green Valley Hospital CEO John Matuska.
"It'll be nice to come out of bankruptcy," said Mr. Matuska. And with a reorganization plan complete, "I think we'll see a drop in turnover… [since] this will eliminate a lot of those uncertainties."