The federal court with jurisdiction over the bankruptcy case of LCI Holdco LLC has approved the sale of the assets of the company to Hospital Acquisition LLC. This was announced by LCI Holdco, the parent of LifeCare Holdings Inc.
The US Internal Revenue Service had opposed the sale saying it would only generate a larger capital gains burden on the bankrupt company without means to pay for it. The Plano, Texas based company is saddled with US$484 million in debt and sought bankruptcy protection back in December.
The company has engaged the services of the Rothschild Investment Bank to sell off its assets to the only bidders of the sale, the LCI's lenders. The assets to be sold off are 1,400 individual beds spread over ten different states.
The company was established in 1992 and was purchased by Carlyle Group LP back in August 2005 for the cost of US$570 million.
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