Mercy reverses auction results; declares University of Iowa winner

[cigaretteman]

The tumultuous and twisting Mercy Iowa City bankruptcy took another stunning turn Friday when the hospital revealed that earlier in the day it reopened the auction, which it already closed, and changed its mind about who won — declaring the University of Iowa as having made the “higher or otherwise better” bid, instead of its largest bondholder Preston Hollow.



Mercy in a U.S. Bankruptcy filing Friday declared UI “the winning bidder” — due, in part, to a “material disagreement” with Preston Hollow, which outbid the university’s final $28 million bid with a $29 million offer at the close of the auction Oct. 10.


Despite more than two weeks passing since it declared Preston Hollow the auction winner, Mercy had not yet asked the court to set a hearing finalizing the sale — as attorneys grappled behind the scenes about details of the offer and hospital transition to new ownership.



“In the days that followed the conclusion of the auction, and prior to a sale hearing, a material disagreement arose between (Mercy) and (unsecured creditors), on the one hand, and the bondholders on the other hand,” according to Friday’s filing. “As a result of this material disagreement, (Mercy) after consulting with the (unsecured creditors), believed that the final bid submitted by the bondholders was not higher or otherwise better than the final bid submitted by the State of Iowa’s University of Iowa.”


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Mercy reverses auction results; declares University of Iowa winner

The tumultuous and twisting Mercy Iowa City bankruptcy took another stunning turn Friday when the hospital revealed in a court filing that earlier in the day it re-opened the auction it already closed and changed its mind about who won – declaring the University of Iowa as having made the...

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[cigaretteman]

From: Barbara J. Wilson, president; and Denise J. Jamieson, vice president for medical affairs and dean of the Roy J. and Lucille A. Carver College of Medicine On Oct. 11, we announced that we were unsuccessful in our attempt to acquire Mercy Iowa City as part of its bankruptcy process. It was not the outcome that we had hoped for, but our commitment to preserving access to health care and jobs locally has not waned. Recent events related to the ownership of Mercy Iowa City have unfolded quickly and the bondholder determined its previously selected bid was not financially viable. Mercy agreed with the bondholder’s conclusion and, as a result, declared the university’s bid as the winning offer. We are very pleased that the university’s renewed bid has been selected by Mercy Iowa City. This long-time hospital has had a significant impact on our community, and we are gratified that we will be able to honor its 150-year history as an anchor of care in eastern Iowa. Although today’s selection of the university’s bid is a significant step forward, there is still plenty of work to be done. The next step is the approval of the selected bid by the bankruptcy court. We will continue to provide updates throughout the remainder of this process, and we look forward to providing stronger access to health care for Iowans. Sincerely, Barb and Denise

 

[tumorboy]

The replay official found conclusive evidence.

 

[Scruddy]

Lawsuits potentially coming?

 

[coasterhawk75]

Had a feeling this might happen when the squabbling started. The University's bid actually was better in overall value because Preston-Howell wasn't really going to lay out cash and didn't make any future promises in conjunction with it's trainwreck of a partner, American Hospital Systems. In addition to the bid the university committed $$ to facility improvements and more $$ to equalize pay and benefits.
I know some would rather have another choice for their healthcare but this might work better in the long run.
It's going to be a messy transition since Mercy's facilities, finances, billing, etc. is a complete mess.
Hopefully it works out well.
Oh yeah, the touchdown should have counted.