2013-06-28 – Montefiore Medical Center Raises Bid to $58.8M to Buy Sound Shore Health System
The Montefiore health system has added $4.75 million to its purchase offer for Sound Shore Medical Center and Mount Vernon Hospital to speed up the sale.
Montefiore raised its bid to $58.75 million plus furniture and equipment as part of a request for a private sale of the bankrupt New Rochelle and Mount Vernon hospitals, which the Bronx-based health system would like to buy by Aug. 2.
The Sound Shore system, which includes a nursing home and other related businesses, filed for Chapter 11 bankruptcy protection May 29 as part of an effort to sell itself to Montefiore.
Attorneys for Montefiore and Sound Shore appeared Tuesday morning in federal Bankruptcy Court and argued that a private sale will take less time than an auction and that there aren’t any potential buyers that Sound Shore hasn’t already considered and approached.
“We believe time is money in connection with this matter,” said Sound Shore’s attorney Burton S. Weston, who last month told bankruptcy Judge Robert D. Drain that Sound Shore has a “cash burn” of $1.5 million a month.
The creditors committee’s attorney supported the private sale and Drain approved the motion.
Kevin Dahill, president of the Northern Metropolitan Hospital Association, said that Sound Shore should be “heartened” that Montefiore was willing to up its offer.
“It shows that Montefiore remains dead serious about this transaction,” he said.
Both hospital systems will benefit by closing the deal sooner rather than later, Dahill said.
“The medical staff will be more comfortable bringing patients there once this is done,” he said.
Weston said an expedited sale would leave more money to be distributed among Sound Shore’s creditors, which are owed about $200 million.
Drain set the court hearing to complete the sale for Aug. 2 and noted any last-minute buyers could still approach the court with a higher offer.