Texas turnaround firm Canyon Atlantic Partners failed to post a $1 million bond required by a Pennsylvania Court of Common Pleas judge to purchase two closed hospitals from West Reading, Pa.-based Tower Health, The Philadelphia Inquirer reported Feb. 25.
Canyon Atlantic was poised to take ownership of the hospitals Jan. 1, but Tower Health canceled the sale agreement in December, saying the firm was unable to demonstrate it could effectively take over ownership of the facilities.
The judge ordered Tower Health to restart the sale of the hospitals Feb. 14 and gave Canyon Atlantic 90 days to evaluate the condition of the hospitals and determine the steps to complete the sale.
Canyon Atlantic did not post the bond by the time the Chester County prothonotary's office closed Feb. 24. The firm could ask for additional time, according to the Inquirer.
Through the deal, Canyon was supposed to pay $1 million at closing and then up to $15.5 million to Tower over time, the Inquirer reported.
West Grove-based Jennersville Hospital closed Dec. 31, and Coatesville-based Brandywine hospital closed Jan. 31.