The financially troubled Lake Shore Health Care Center in Irving received another month to market itself to prospective buyers following Wednesday’s hearing in bankruptcy court in Buffalo.
The hospital has been on life support since October, when Lake Shore’s parent announced its intention to close it at the end of January. Lake Shore entered bankruptcy protection in December and has managed to stay open thanks to an infusion of financial aid and steps taken to ease its financial losses.
The hospital owes $1.7 million to secured creditors and $5 million or $6 million to its unsecured creditors, Lake Shore attorney Jeffrey A. Dove said at the hearing before U.S. Bankruptcy Court Chief Judge Carl L. Bucki that was attended by 10 lawyers representing the various parties.
Dove said Wednesday that the hospital received three bids for pieces of its operations during a recent planned auction of its assets that later was canceled.
The hospital sought, and received from Bucki, permission to reject the two bids for its home health care network – the highest was $1.3 million – as insufficient. Dove also received permission to continue discussions with another bidder who offered $100,000 for 18.1 acres of vacant land, although there is some question whether the hospital controls the entire parcel sought by the bidder.
Lake Shore continues to retain the services of the Hill Group, a brokerage firm, to market the hospital to a buyer who would keep it open. The next hearing in the case is set for 1 p.m. Aug. 25 in Bankruptcy Court.