December 11, 2012
News Coverage, Answers, Appeals, Complaints, Motions, Orders, Trial Notes
A Delaware bankruptcy judge on Tuesday refused to freeze payments from the proceeds of LifeCare Holdings Inc.'s $320 million acquisition by Carlyle Group LP, rejecting the federal government's bid to keep the funds on ice while it appeals the deal.
LifeCare Holdings Inc. urged a Delaware bankruptcy judge Tuesday to ignore the federal government's attempt to block proceeds from the hospital chain's $320 million sale to Carlyle Group LP from being paid, arguing the U.S. is wrong about who actually owns the money.
A Delaware bankruptcy judge signed off on a proposed settlement Tuesday between LifeCare Holdings Inc.'s creditors committee and its private equity purchaser, removing the final obstacle to hospital group's $320 million sale to The Carlyle Group LP.
The U.S. government asked a Delaware bankruptcy judge Tuesday to reject a deal underpinning the $320 million sale of private equity-owned LifeCare Holdings Inc., saying the proposed settlement is impermissible because it would pay the hospital group's unsecured creditors ahead of federal tax claims.
LifeCare Holdings Inc. and its creditors committee reached a settlement Friday that would provide unsecured creditors with about $3.5 million in cash in exchange for the committee supporting the hospital group's Chapter 11 plan, which includes its $320 million sale to private equity firm Carlyle Group LP.
A Delaware bankruptcy judge approved the $320 million sale of LifeCare Holdings Inc. to private equity owner Carlyle Group LP Tuesday, overruling the U.S. government's move to nix the deal because the firm's credit bid didn't account for paying the tax bill generated by the deal.
The U.S. government asked a Delaware bankruptcy judge Friday to upend the proposed sale of LifeCare Holdings Inc.’s 27 hospitals, saying the private equity-owned company can’t pay potentially $24 million in taxes on the deal.