Lang
10/3/23
A second bidder has made an offer for Mercy Iowa City, meaning the fate of the hospital facility will be decided at auction.
Mercy filed for Chapter 11 bankruptcy on August 7th. The University of Iowa submitted a stalking horse bid of $20 million. Clauses in the bidding process include an $800,000 “breakup fee” and a requirement that competing bidders match the offer with increasing $100,000 increments. That means the second bid, made on Monday, must be at least $20.9 million.
Both bidders have asked that Mercy and its assets be placed into a court-appointed receivership, which would take responsibility for day-to-day operations from current ownership while the sale is being decided.
Wednesday morning’s auction is set for 10 a.m. at the law offices of McDermott Will and Emory in Chicago.