San Antonio’s Forest Park Hospital Sold to a Bank in Foreclosure Auction

by San Antonio Attorney

Forest Park Medical Center, located in San Antonio, is now owned by a subsidiary of a bank named Texas Capital Bank, after a conclusion of the foreclosure auction on March 1, 2016.

The CEO of the Foreclosure Listing Service confirmed that the amount of the winning bid for $58.2 million, the cost was less than $10 million as compared to the amount the real estate owner of Forest Park owed Texas Capital Bank.

The company who bought the hospital was TCB/Marina del Sol.  It is a limited liability company with a registered agent who holds a position at the Texas Capital Bank.

Forest Park halted its payment of lease to FPMC due to the fact that it cannot keep up with mortgage payments.  The bank posted the notice of foreclosure again in October after it couldn’t make it auction.  Forest Park immediately filed for bankruptcy to avoid auction of the property.

The hospital shut down on October 15 and laid off 193 workers.  This action triggered a class action lawsuit, with the accusation that the managers did not give an early notice.

Todd Furniss, CEO of FPMC, responded that the bankruptcy judge did not give sufficient time to sell the property.  Texas Capital Bank already gave $5 million in finances to aid in FPMC’s hospital license maintenance.  The license is valid until September 30, according to the Texas Department of State Health Services.

Forest Park Medical Center was a hospital designed for a more high-end clientele.  It was a physician-owned concept that had branches in Dallas, Frisco, Southlake, Forth Worth and San Antonio.

A branch was built in Austin but did not open.  Each of the facilities in the areas of Texas has already filed for bankruptcy protection.  Two places will anticipate an auction by the end of June this year.

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