Forest Park Medical Center Bankruptcy Sale Delayed Despite Generating Multiple Bids

by San Antonio Attorney

The San Antonio Northwest Side Aspect of Forest Park Medical Building has been proposed for auction.  However, the sale will be halted due to several setbacks.

The owner of Forest Park Medical Center San Antonio recently filed for bankruptcy protection, stating that it has already chosen a buyer following an auction that generated multiple bids.

FPMC already sought approval from Texas Capital for its proposed sale; this was further developed into a financing agreement with the former chain of hospitals following its October filing for Chapter 11 Bankruptcy.

In fear that Texas Capital will opt to foreclose, FPMC stated in the December court filing to issue a specific order that prevent a lender in taking the action.

San Antonio bankruptcy lawyer Raymond Battaglia, revealed that he also doesn’t know the reason why the bank did not respond to the offer of the highest bidder.

Battaglia added that this bidder is currently working with an entity, which will run the hospital.  The name of the highest bidder or the offered amount remains undisclosed.

Forest Park Medical Center San Antonio began its operation in the fall of 2014 but eventually closed a year later due to financial troubles.

The hospital operator shifted the blame of their financial problems towards insurance companies that refuse contracts.  The closing affected 139 employees.

The recently closed hospital has already halted its rent payments to the main FPMC office, owing more than $8.7 million in rent. Majority of the debt goes to mortgage loan accounts.

The hospital garnered up to $110.3 million in assets and $67.4 million in liabilities.

FPMC conducted an expedite sale imposed by the bank, trapped by the harsh reality of the industry in which the property was marketed, this resulted in a snag in their proposed building sale.

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