The finalization of the sale, which was approved last year by U.S. Bankruptcy Judge John J. Thomas, signifies another step in the hospital’s bankruptcy, according to the report.
The hospital’s parent company, Saint Catherine Hospital of Pennsylvania, filed for bankruptcy in 2012. The case was originally Chapter 11 but was converted to Chapter 7. Chapter 11 allows hospitals to reorganize their businesses, but Chapter 7 bankruptcies involve the full liquidation of all assets and eventual closure.
Sovereign plans to use the facility to handle mental health and substance abuse treatment, according to the report.
Under the terms of Judge Thomas’ order, $100,000 of the $550,000 purchase price will be used for expenses, including commissions for Schwab and Bennett Williams Realty, which facilitated the sale, according to the report. The rest will go toward the bankruptcy estate’s creditors.
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