Gov't Fails To Nix Carlyle's $320M Hospital Group Buy
Law360, Wilmington (April 2, 2013, 9:07 PM EDT) -- 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 government objected to Carlyle's proposed asset acquisition on the ground that the cashless transaction would leave LifeCare unable to pay an estimated $24 million in capital gains taxes, rendering the estate administratively insolvent.
But U.S. Bankruptcy Judge Kevin Gross said such an argument was a subject for a confirmation hearing, adding that the government...
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