Lang
10/27/23
The sale of Mercy Iowa City is still providing unexpected twists and turns as the hospital group announced Friday that the University of Iowa, and not its primary bondholder, had actually won the auction to determine a new owner.
Court filings obtained by the Cedar Rapids Gazette indicate Mercy officials reopened the auction after what it called a “material disagreement” with the original winning bidder, Preston Hollow. Preston Hollow had outbid the UI, $29 million to $28 million, on October 10th. At issue was a disagreement between Preston Hollow and the unsecured creditors with which it had been bidding. Mercy officials say after consulting with the creditors, it was determined the Preston Hollow bid might not actually be higher than the UI’s bid. Bidding was reopened at 9:00 Friday morning, with the UI coming out on top.
Mercy has asked a judge to set a sale hearing for November 6th.