Two Forest Park Medical Centers scheduled for foreclosure auction today, have filed for bankruptcy, staving off the foreclose sale.
The group that developed the hospitals, the Neal Richards Group of Dallas, filed for Chapter 11 bankruptcy on Nov. 30, according to Sabra Health Care REIT Inc., the company that financed the hospitals.
In a news release, Sabra officials said that the Forest Park Medical Center Fort Worth and the Forest Park Medical Center Dallas each filed a petition for relief under Chapter 11 of the United States Bankruptcy Code in the Northern District of Texas.
According to the news release: “We expect the borrowers’ bankruptcy petitions to result in a competitive sales process of the borrowers’ assets where we would have the ability to credit bid up to the level of our investments. If the bankruptcy process does not result in a timely sale of either asset to a suitable buyer, we expect to request the bankruptcy court to lift the automatic stay to allow a foreclosure sale under the appropriate deed of trust to take place.”
Operationally the Fort Worth and Frisco hospitals continue to ramp up and both are exceeding expectations at this point despite all the turmoil that they’ve been through. The Frisco hospital will produce next month enough revenue to cover our rent,” said Rick Matros, CEO and chairman of Sabra.
During a conference call, Sabra officials said they expect the situation to be settled by the end of the first quarter.
“Operationally the Fort Worth and Frisco hospitals continue to ramp up and both are exceeding expectations at this point despite all the turmoil that they’ve been through,” said Matros during the call. “The Frisco hospital will produce next month enough revenue to cover our rent,” he said.
Forest Park Medical Center first opened in Dallas in 2009, then opened the Fort Worth location last year in the new Clearfork development. There were also locations in Southlake, Frisco and San Antonio. The Frisco and San Antonio locations have also closed.
The Fort Worth location is a 54-bed acute care hospital. It is still in operation.