ODRO
(WKBN) — In what is becoming a lengthy ordeal, Steward Health Care System is again pushing deadlines involved in the sale of its hospitals after filing for Chapter 11 bankruptcy on May 6.
Steward Health operates 31 hospitals across eight states, including Trumbull Regional Medical Center in Warren, Hillside Rehabilitation Hospital in Howland and Sharon Regional Medical Center.
According to documents filed Sunday in the U.S. Bankruptcy Court for the Southern District of Texas — where Steward Health is based — the sale hearing previously scheduled for July 31 has been adjourned until Aug. 13. The adequate assurance objection deadline and the sale objection deadline has also been extended until Aug. 9.
The local locations were originally set to go to auction June 27, but were adjourned before being canceled July 21 due to receiving no qualified bids, court documents state.
Sale hearings typically follow within 3-10 days of an auction, with the deadline to object falling within 3-7 days prior, according to Goodwin Procter LLP. However, due to the lack of qualified bids, the entire legal process is delayed.
Court documents state that Steward Health may further adjourn any sale hearing or other dates and deadlines in according with bidding procedures.
In January, First News investigated after the company was having issues paying its rent, as well as some loan obligations. Just last week a Senate committee voted to authorize an investigation into the bankruptcy of Steward Health and to subpoena the company’s CEO, Dr. Ralph de la Torre.
Committee Chair Sen. Bernie Sanders said de la Torre became “obscenely wealthy” by loading up hospitals from Massachusetts to Arizona with billions of dollars in debt and selling the land underneath the hospitals to real estate executives who charged unsustainably high rents.
Steward Health Care said it plans to address the subpoena.
