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Hospital and its Affiliates Emerge from
Chapter 11 Without a Sale or Shutdown

January 01, 2014
Client Success


A new healthcare provider in the Weimar, Texas area could not open for years because there was no bankruptcy process in place due to existing liens on a closed hospital facility. Any further delay in this process would have prevented the closed facility from being sold in the near term, thereby depriving the local community of a healthcare provider.


Once a buyer was found, the hospital retained Husch Blackwell to orchestrate the filing of a Chapter 11 bankruptcy and the subsequent sale of the hospital free and clear of all existing liens and judgments. The sale of the hospital closed on December 31, 2013 through an auction process proposed by the firm and approved by the bankruptcy court. The new owners are in the process of getting the required regulatory matters in place to open the hospital in March. While the sale price only covered the lenders’ claims and some closing costs, the real benefit was to get a working hospital for the people of Weimar.