Monday, June 14, 2010

LifePoint Hospitals remains sole bidder for Sumner Regional

No new suitor emerged to compete with LifePoint Hospitals Inc.’s deal to buy bankrupt Sumner Regional Health Systems, giving the Brentwood-based hospital chain a clear shot at winning approval at a court hearing on Tuesday.
Under the sale agreement disclosed in late April as Sumner Regional filed for bankruptcy, other parties had until last Thursday to make bids to compete with LifePoint’s $154.1 million cash offer plus its commitment to at least $60 million of capital spending over a decade. With no rival offers, an auction set for 11 a.m. today of the assets of the Gallatin-based four-hospitals system didn’t take place.

“Because there were no qualifying competing bids and therefore there was no auction, Sumner Regional will move forward with tomorrow’s sale hearing,” said Nashville lawyer Robert A. Guy Jr., who’s representing the hospital system.

Besides court approval, the LifePoint- Sumner Regional deal also would have to be approved by the state’s attorney general since it involves sale of a not-for-profit entity to a for-profit chain. The deal already has antitrust clearance from the Federal Trade Commission.

During Tuesday’s sale confirmation hearing, the court also is expected to hear objections to the deal such as from Sumner County government and some creditors whose contracts with Sumner Regional will be assigned to LifePoint.

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