CIT Sells Hospital Out Of Bankruptcy
Transaction will be one of the first sales and restructurings of a hospital targeted for closure by the Berger Commission.
July 11, 2008
CIT Group advised Victory Memorial Hospital and its unsecured creditors committee on the $44.9 million sale of the healthcare provider's Brooklyn, N.Y., campus site and two operating businesses.
The US Bankruptcy Court for the Eastern District of New York approved the transaction two weeks ago. Sunset LG Realty LLC is buying Victory's campus as well as its 150-bed skilled nursing facility and 400-patient home healthcare unit.
Sunset is arranging for Victory's businesses and clinics to continue operating under new management. The transaction will be the first sale and restructuring of a hospital selected for closure by the Berger Commission, a panel formed by ex-New York Governor George Pataki and the New York State Legislature to review the availability of hospital and nursing home beds.
"This deal is a great example of how financially-stressed institutions can effectively monetize real estate assets and restructure services so that business continues and community needs are served," said Natalie Wilensky, a managing director on CIT Investment Banking Services' real estate team, in a statement.
The transaction is subject to approval by the New York State Department of Health (DOH) and is expected to close in the fourth quarter.
"Much work was done in advance of an auction to involve DOH in the bidder prequalification process and gain certain assurances that the buyer and its operating partners would likely pass DOH approval requirements," Wilensky told GlobeSt.com in an interview last week.
For the entire GlobeSt.com story on the sale, click here.
Victory filed for bankruptcy in November 2006, when it was informed the Berger Commission would recommend the hospital close and its 240 acute-care beds be decertified.
A recent IDD article on hospital restructurings is available here.
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