BankUnited N.A., a secured creditor in Universal Health Care Group Inc.'s chapter 11 case, is asking the court to throw the case out, saying that if it cannot proceed with a foreclosure sale, the company's value will "vaporize," Dow Jones DBR Small Cap reported today. BankUnited, which is representing secured noteholders owed $36.5 million, says that as a result of Universal's chapter 11 filing, the foreclosure sale was halted, but the state's authority to appoint a receiver who, it says, will liquidate Universal, is not affected.
For more information about health care insolvencies, be sure to pick up a copy of the ABI Health Care Insolvency Manual, Third Edition.