Sales of debtors’ assets in bankruptcy proceedings are quite common, either as part of a plan of reorganization or liquidation or pursuant to Bankruptcy Code §363. The Bankruptcy Code and the Federal Rules of Bankruptcy Procedure provide that a sale of a debtor’s assets occurs after notice to all creditors and an opportunity for a hearing.
Much of the commentary on the pending bankruptcy legislation has focused on consumer bankruptcies. However, several provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, S. 256 (the “Act”), are specifically targeted to health care bankruptcies.
Intrepid U.S.A. Inc. and its affiliates operate as home health care providers and nurse and medical staffing providers through approximately 5,766 employees in 100 locations in 31 states, primarily in the Midwest, South and Southeastern United States. Intrepid serves the elderly, homebound, disabled and other disadvantaged individuals, providing in-home nurses, therapists and administrators.
In recent years, nonprofit health care entities have experienced increased and highly publicized state attorney general scrutiny of, and sometimes interference with, the sales of facilities, use of assets and other health care transactions.1 Traditionally, state attorney general review of corporate health care transactions has been reserved for nonprofit-to-for-profi
