The Deal Bankruptcy Insider
October 08, 2007
According to this article, the U.S. Bankruptcy Court for the District of New Jersey in Newark rejected an $18.8 million offer for Bayonne Medical Center. The article states, “Judge Morris Stern…would not sanction a stalking-horse bid of $6.3 million in cash and $12.5 million in assumed debt at a hearing on September 28. Andrew Sherman, Vice Chair of the Firm’s Creditors’ Rights/Bankruptcy Reorganization Practice Group and counsel to the official committee of unsecured creditors was interviewed for this article. According to the article, “[Judge] Stern thought the asset purchase agreement… ‘was too weak and had too many contingencies,’ Sherman says. Bayonne had agreed to the deal September 24.” Sherman continues, “The court allowed the hospital to continue the interim use of its [debtor-in-possession] funding and its interim use of cash collateral until a new hearing on [October 5].