TLC hires appraiser
The U.S. Bankruptcy Court in Buffalo allowed TLC Health Network to hire a real estate appraiser for Lake Shore Health Care Center.
Although little action was expected out of Monday’s hearing, two motions were approved and two were adjourned for the next hearing date on March 10.
According to Chief Judge Carl L. Bucki’s Law Clerk Adolph Iannaccone, the first motion the court approved was for TLC to hire a real estate appraiser.
“They approved hiring a real estate appraiser to get a value of the property, to get a practical valuation because the taxable assessment may not be the actual amount the (Lake Shore Facility) is worth,” he explained.
Iannaccone said Judge Bucki also allowed TLC to retain a lawyer for health care matters.
Two financing motions scheduled for Monday’s hearing were adjourned.
Iannaccone explained Judge Bucki had questions about the financing from the Dormitory Authority of New York state for $500,000, which was approved on an interim basis on Feb. 19. Iannaccone previously explained it was approved on an interim basis until all the terms of the loan agreement could be worked out.
He said they are revisiting the order for this financing in light of Judge Bucki’s questions.
Bucki also questioned the $1 million financing that Lake Shore has already borrowed from Brooks Memorial Hospital. He explained after the last hearing that Lake Shore was able to borrow the $1 million without the agreement being finalized because most of the terms had been worked out.
Iannaccone said both of the financing motions were adjourned until March 10.
Lake Shore Hospital submitted a closure plan to the New York State Health Department in October and later in December filed for Chapter 11 bankruptcy. No closure date has been set and hospital officials have expressed a desire to keep the facility open for a seamless sale. TLC Interim CEO John Galati has previously said there are two parties interested in the hospital. No offer has been accepted, or considered by the TLC board, Lake Erie Regional Health System Board or the bankruptcy court.