MedCath Corp., Charlotte, N.C., announced it sold two of its hospitals in deals that will eventually net the company a total of $75 million.
MedCath completes sale of La., Ariz. hospitals
MedCath signed a purchase agreement and closed a transaction effective Sept. 30 to sell 58-bed Louisiana Medical Center & Heart Hospital, Lacombe, to Cardiovascular Care Group, Nashville, according to a MedCath news release. Terms of the deal had MedCath convert some of the New Orleans-area hospital's intercompany loans into equity and then selling all of its equity and remaining intercompany loans for $23 million. MedCath is financing the deal for 60 days with a possible 60-day extension, according to the release. MedCath expects to receive approximately $33 million from the transaction after closing costs and including tax benefits related to the sale.
A previously announced deal to sell 70-bed Hualapai Mountain Medical Center in Kingman, Ariz., to Kingman Regional Medical Center also closed Sept. 30. That deal is expected to net MedCath $42 million and valued the hospital's assets and about 18.6 acres of adjacent undeveloped land at $31 million including retention of working capital.
MedCath, which has sold 11 hospitals since March 2010, garnered approval from shareholders to sell off the remaining assets and liquidate the company at a special meeting Sept. 22. Two hospitals remain, according to its website.
O. Edwin French retired as CEO and a member of the company's board effective Sept. 23.
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