Bankruptcy court reviewing NRMC sale today

Published 12:06 am Wednesday, July 16, 2014

NATCHEZ — The federal bankruptcy court will review the proposed sale process for Natchez Regional Medical Center this morning.

Judge Neil Olack will review the hospital’s bidding proposal during hearings scheduled for 10:30 a.m. at the federal courthouse on Pearl Street.

The matter was delayed earlier this month after the hospital’s creditors asked for more time to review the sale process.

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The Adams County Board of Supervisors and Community Health Systems have reached an agreement for CHS to purchase the county-owned hospital for a total of $18 million, of which $10 million will be paid upfront and $8 million will come in the form of pre-paid ad valorem taxes.

By law, the hospital will still have to go to auction, but if no one outbids the CHS agreement the sale will automatically close with CHS.

Because the hospital is in bankruptcy, the process needs the judge’s stamp of approval before it can move forward.

After signing the agreement with CHS last week, members of the board of supervisors said the proposed sale will pay off the hospital’s creditors and the bonds it owes.

The hospital filed bankruptcy earlier this year after members of its board of trustees said the facility’s liabilities exceeded its assets by $3 million.