BUFFALO – The deadline for bids on TLC Health Care Network’s assets, including Lake Shore Health Care Center, closed Monday.
TLC had a hearing in U.S. Bankruptcy Court Monday in Buffalo to discuss the auction as well as several motions.
Chief Judge Carl L. Bucki’s Law Clerk Adolph Iannaccone reported TLC has received several bids, but none on the overall operation.
He explained bidding is only accepted in $100,000 increments.
“Generally speaking, they put in initial bids and we see how much they are willing to go up against each other, like an auction,” he explained.
Iannaccone said although TLC did not received a formal bid for Lake Shore’s operations, it has received an “expression of interest.” However, more than one qualifying bid is needed to trigger an auction.
Scott Butler, TLC’s divisional director of business development, confirmed Monday night that an auction will not take place because only one bid each was received for the vacant land and the home health care business. He said the Friday deadline for bids was extended to Monday night to “make sure there were no stragglers.”
This opens up TLC to determine a plan for the future.
“There would only be an auction process if there were two or more bids that meet the minimum acceptable requirements. Right now, we do not have that for the hospital or any component. … We will proceed with our plan to present our own bankruptcy exit plan to the court at a later date,” he explained in an email Monday evening.
Butler added TLC will continue discussion with the parties that bid on the land and home health care business.
Iannaccone said bids were accepted at the law offices of Bond, Schoeneck and King PLLC in Buffalo, counsel representing the creditor’s committee. Iannaccone said the auction is being held at the creditor’s committee’s law firm because TLC’s attorney, Jeff Dove of Menter, Rudin & Trivelpiece PC, does not have a Buffalo office.
TLC also refused the use of the Dormitory Authority of New York state loan for $1 million in light of receiving $6.5 million Interim Access Assurance Funding from the department of health.
Judge Bucki also extended the use of cash collateral until the next hearing to review auction results on July 23.