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Cole Schotz Successfully Navigates Saint Michael's Medical Center Through Chapter 11 Sale Process

Attorneys: Michael D. Sirota, Gerald H. Gline, Ryan T. Jareck, Marc P. Press, Jacob S. Frumkin and Rebecca Hollander

After close to three years of enduring state and regulatory roadblocks that prevented the sale of the Saint Michael's Medical Center, Cole Schotz was retained to file for Chapter 11 bankruptcy protection in August 2015 as a strategy to expedite the long-awaited sale of the facility to Prime Healthcare. In November 2015, after conducting an auction that drove up the sales price to $62 million, the Cole Schotz team achieved Bankruptcy Court approval of the sale of Saint Michael’s to Prime Healthcare. Cole Schotz worked with the relevant agencies of the State of New Jersey to obtain regulatory approval of the sale, allowing Saint Michael’s to maintain staffing levels and continue providing much needed patient care in the Newark community. In March 2016, Saint Michael’s Medical Center was granted final approval of its sale to Prime Healthcare, which closed on May 1, 2016. Prime Healthcare has agreed to keep the hospital open as a full service acute care and outpatient facility providing all of its existing services for a minimum of five years, hire substantially all 1,400 hospital employees, maintain or increase current levels of charity care, and maintain existing health insurance contracts. In addition, Prime Healthcare has agreed to invest $50 million to upgrade technology and services and continue to modernize the hospital..

The Cole Schotz team representing Saint Michael’s Medical Center included Michael D. Sirota, Gerald GlineRyan Jareck, Marc PressJacob Frumkin and Rebecca Hollander.

 

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