Why delay Landmark again?
So what happened in court today? Judge Michael Silverstein was supposed to pick Landmark’s buyer. Instead, he extended the time line once again.
Why? The Special Master says Landmark’s cash on hand is quickly dwindling, so the hospital can’t waste any more time. Bidders have already submitted enhanced offers and talked on and on in court. Why wait any longer?
This is Silverstein’s logic-
All of the bidders have contingencies in their offers to buy Landmark. That means if x or y doesn’t happen, it gives them the right to walk away from buying the hospital, even if they’re chosen by Sillverstein. If that happened, Landmark would probably just go under. It’s already running out of cash and couldn’t afford to wait for another process like this one.
So, Silverstein wants the bidders to spend a week and a half taking care of those “contingencies.” Here are the major ones-
- Work out a tax plan with the city of Woonsocket (none of the companies have done this yet)
- Make a deal with the union (RegionalCare)
- Figure out an agreement over Blue Cross Blue Shield’s reimbursement rates (Transition and Prime)
- Submit an asset purchase agreement to the court (Transition and Prime)
Judge Silverstein hopes to better compare the offers once her doesn’t have to worry that the chosen buyer could abandon the sale.
But is a week and a half long enough to get this stuff done? Special Master Jonathan Savage said in court that he’s been asking and pleading with the three bidders to take care of these conditions, and they haven’t. Who’s to say they’ll magically make some progress by May 6th?
Savage even asked Silverstein for permission to work with a new bidder during the next week and a half. Was this just a move to put pressure on the companies that we know about, or is another interested party waiting for its chance to buy Landmark in the very last minute?
Silverstein shot down that request, forbidding Savage from working with anyone else until May10th- the date when Silverstein will pick one OR NONE of the offers. If it comes to rejecting everyone, Savage might be able to work with someone new. Makes you wonder if Caritas wants another shot at buying Landmark…
I’ll be posting what I know as I know it.
As an aside, May 10th is not only Silverstein’s new deadline for picking a buyer, it’s my birthday. An end to this part of the Landmark saga would be a nice present. If not that, I’m just hoping I don’t spend the entire day in court.