iowa city

Mercy arranging tours for potential bidders in its bankruptcy sale

Mercy arranging tours for potential bidders in its bankruptcy sale


Mercy Iowa City is shown Aug. 7 in Iowa City. in Iowa City,. The hospital, now in bankruptcy, has arranged tours of its health care facilities next week for potential bidders interested in competing for its assets against the University of Iowa. (Jim Slosiarek/The Gazette)
Mercy Iowa City is shown Aug. 7 in Iowa City. in Iowa City. The hospital, now in bankruptcy, has arranged tours of its health care facilities next week for potential bidders interested in competing for its assets against the University of Iowa. (Jim Slosiarek/The Gazette)

IOWA CITY — Mercy Iowa City has arranged tours of its health care facilities next week for potential bidders interested in competing for its assets against the University of Iowa — which last month made an initial “stalking horse” bid of $20 million to buy the 150-year-old community hospital.

During a hearing Wednesday in U.S. Bankruptcy Court — following Mercy’s Aug. 7 filing for Chapter 11 protection — attorney Felicia Perlman, representing Mercy through her Chicago firm, McDermott Will & Emery, said, “We do have several parties who have signed (nondisclosure agreements) and are active in the data room, and we are providing diligence to and these tours for.”

“We’ll know more whether they are likely to be real bidders or whether they lose interest,” Perlman told Judge Thad Collins in response to his request for a status update.

She reported active recruitment and outreach to any individuals or entities that have expressed interest.

“We

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September 18, 2023 by ATTORNEY

Bondholders, bankruptcy trustee seek slowdown in Mercy hospital sale


Signs direct Mercy Iowa City patients to areas in the hospital, which may be sold to the University of Iowa. The hospital’s bondholders and creditors, however, asked a judge this week to slow down the sale to give them time for due diligence and to maximize the “value of the sale.” (Jim Slosiarek/The Gazette)
Signs direct Mercy Iowa City patients to areas in the hospital, which may be sold to the University of Iowa. The hospital’s bondholders and creditors, however, asked a judge this week to slow down the sale to give them time for due diligence and to maximize the “value of the sale.” (Jim Slosiarek/The Gazette)

IOWA CITY — Although Mercy Iowa City wants an expeditious sale of its assets — after the 150-year-old hospital filed for Chapter 11 bankruptcy this month — its bondholders and creditors this week asked a judge to tap the brakes to give them time for due diligence and to maximize the “value of the sale.”

“(Mercy’s) proposed bidding procedures are premised upon an exceptionally abridged timeline,” the hospital’s primary bondholders argued in court filings Thursday, referencing Mercy’s request for a Sept. 19 deadline for other bids to compete with the University of Iowa’s $20 million opening offer.

“The timeline under the proposed bid procedures is so compressed that it could potentially deter interested parties from participating in the sale process and have a chilling effect.”

Chief Judge Thad Collins on Friday agreed to move a hearing on the timeline and sale process from Aug. 31 to

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August 28, 2023 by ATTORNEY
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