Here are five things to know about the auction.
1. Debbie Owens, CEO of multipurpose healthcare company New Beginnings Care, has promised to pay about $7.1 million for Parkside at Hutcheson Nursing Home, according to the report. Her offer will be the first bid at the auction.
2. The auction of the nursing home is part of bankruptcy proceedings. Hutcheson Medical Center filed for Chapter 11 bankruptcy in November 2014, when the hospital owed $82 million, including approximately $26 million of secured debt, most of which will go back to Regions Bank. Chattanooga, Tenn.-based Erlanger Health System, which loaned Hutcheson Medical Center $20 million in 2011, also expects its money to be paid back because Catoosa and Walker county officials guaranteed the loan, according to the Chattanooga Times Free Press.
3. Erlanger attorneys have opposed the auction, arguing the hospital should be able to foreclose on the nursing home, according to the report. However, the bankruptcy judge disagreed. Erlanger’s attorneys have also argued the sale was not proper for several legal reasons.
4. A date for the auction has not been set. But attorneys will set a firm date during a status hearing in Atlanta on Oct. 30.
5. The nursing home auction comes as Hutcheson Medical Center is trying to move toward an auction sale of the hospital.
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