US Wants Lifecare Ch. 11 Sale Nixed Over $24M Tax Bill

Law360, Washington (March 8, 2013, 6:38 PM EST) -- 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.

Texas-based Lifecare — owned by Carlyle Group LP — has received a $320 million credit bid for its assets from lenders.  But the stalking horse bid is substantially higher than the tax basis of the assets, resulting in a big tax bill that the company concedes it can’t cover, according to an objection signed by U.S. Attorney Charles M. Oberly.

The Internal Revenue Service doesn’t know...

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